Three Arguments for Netflix’s Lack of Interest in Advertising

While Disney offers Disney+ for just $6.99 per month, and you can pay even less if you commit to a year, AT&T’s HBO Max will launch with a higher price than Netflix, but it plans to introduce an ad-supported version to support growth. Needham analyst Laura Martin estimated last month that Netflix could lose 4 million U.S. subscribers if it does not introduce a lower-priced, ad-supported version of its service to compete with all the new entrants in the streaming wars. However, Netflix’s management says it has no interest in getting into advertising, saying “there is not easy money there.” CEO Reed Hastings said on the company’s fourth-quarter earnings.