Snap's Chief Business Officer Is Leaving To Run Ads On Netflix

Netflix has found an executive to lead its plan for an ad-supported tier: Snap's chief business officer and top ad exec, Jeremi Gorman. The Verge reports: Gorman on Tuesday told colleagues at Snap that she was leaving to join Netflix along with Peter Naylor, Snap's vice president of ad sales for the Americas, according to two people familiar with the matter. Russ Caditz-Peck, a Snap spokesperson, confirmed the departures. Both Gorman and Naylor are leaving Snap amid a restructuring of its ads team and layoffs hitting the social media firm this week. Snap plans to cut roughly 20 percent of its workforce starting Wednesday, The Verge earlier reported.

Kumiko Hidaka, a Netflix spokesperson, confirmed that Gorman will be the company's President of Worldwide Advertising and that she'll report to COO Greg Peters. Naylor will lead Netflix's ad sales organization and report to Gorman. AdAge first reported on the hires. "Jeremi's deep experience in running ad businesses and Peter's background in leading ad sales teams together will be key as we expand membership options for consumers through a new ad-supported offering," Peters said in a statement.

Just announced 1000 layoffs

[rsilvergun]

because their numbers are bad. Must be nice, you do a crap job and get offered a promotion in another company. It's good to be the king.

Re:

[sdinfoserv]

Sounds like a job for Adam Neumann.

Netflix situation is sad

[Maxo-Texas]

They gave everyone a great deal on a ton of content. Then all the content owners tore apart the market into a couple dozen different slices and are demanded $6 to $15 each.

I still support Netflix but given the constant cancellations, increasing rates, and now advertising ... I've finally started rotating to different content providers.

Re:

[Maxo-Texas]

I must disagree. It was not "solely of netflix own creation". The fact is the content creators got greedy.
Many of them are now sitting on content which most people are not subscribing to. So we've gone back to a bunch of material out of circulation until copyright expires. They were getting paid for it before.

Netflix charged a fair price for what they offered. Even now, it's partially inflation driving their costs up.

But the incredible value proposition that was there is gone.

Well this aged like...

[MindPrison]

...milk.

Imagine going from layoffs to running Netflix "brilliant" idea of half pay/half ads supported streaming. Most people paid for Netflix when it came out to escape ads.
It's like you're being hired to take the coming fall (fail) of an idea that was doomed from the start so no one else takes it.

Netflix increased its price from 6$ to 20$ (here in Sweden) for its full 4K service over the last few years, and now drops to 10$ (7$ in the US if I am not mistaken?) WITH ads mixed in between - while Amazon Prime just recently lowered their subscription price, and Disney+ started around the same price Netflix started out with AND have a better rotation and a better (highly subjective) selection of series and movies to begin with, at least regionally for us.

Re:Well this aged like...

[JaredOfEuropa]

I fully expect the price of the ad-free tier to keep increasing over time. They might introduce some ads into the lower currently ad-free tiers; at first only on the home screen, then as pre-rolls, and finally during content. Until only the Premium plan remains ad-free. And as advertising becomes an increasingly important revenue stream for Netflix, there will be tremendous pressure, from their advertisers as well as the Netflix execs, to also serve ads to those more affluent viewers who can afford the Premium tier.

Re:

[leonbev]

Is anybody really going to sign up for the ad-supported tier, though? I figure that the power move for thrifty people will be to sign up for a month, binge watch all of the new content that's actually worth watching, and then cancel your subscription until next year.

Re:

[Cpt_Kirks]

The term you're looking for is "Death Spiral".

Re:

[bsdetector101]

Disney+ is still losing a lot of $$$.

I rarely watch Netflix anymore

[sir_smashalot_3rd]

but when I start seeing ads I will 100% surely cancel my subscription. I *hate* adds and will never tolerate them.

Snap?

[TwistedGreen]

Am I supposed to know what Snap is?

Is it related to Crackle and Pop?

Re:

[Voyager529]

Am I supposed to know what Snap is?

Is it related to Crackle and Pop?

"Snap" refers to Snap, Inc., the company who owns and operates the social networking apps Snapchat and Bitmoji.

At least the DVD service still exists

[kalpol]

High latency, but high quality

Re:

[antdude]

I wonder how long Netflix will keep offering discs.

Make sure its differentiated...

[Dunkirk]

I'm about to cancel Hulu because they won't differentiate the ad-supported content from the ad-free content I'M PAYING FOR. At least Prime makes this distinction clear. If Netflix muddles their content, I'll cancel them too.