After topping second-quarter earnings expectations, Netflix (NFLX) leaders discussed the streaming giant’s strategic advertising push, its paid subscriber growth, potential headwinds, and more in the company’s latest quarterly update.
As part of its strategy to boost its advertising business, Netflix said it is planning begin phasing out its ad-free basic plan in the U.S. and France.
The company said it has already seen some positive results from similar efforts in other markets. Netflix already phased out the basic plan in the U.K. and Canada, which Netflix said contributed to a 34% sequential jump in memberships with ads in the second quarter.
The streaming giant also said that integrating ads into its offerings allows it to offer lower prices to users and creates an additional source of revenue for the company.
Netflix CEO Spencer Neumann said the “attractive entry point in terms of price point and feature set for our ads plan” could help support Netflix’s …