Netflix changes ad chiefs with growth shaping up as a struggle
hapabapa
Among recent leadership changes at Netflix (NASDAQ:NFLX) has been the replacement of the company's advertising chief -- a move said to be tied to ambitious expectations for stronger growth in the company's latest revenue stream.
Last week, Netflix (NFLX) named new executives to take the roles of chief product officer and chief technology officer.
Meanwhile, co-CEO Greg Peters opted to replace Netflix's (NFLX) ad sales chief Jeremi Gorman with longtime company exec Amy Reinhard -- a move meant to accelerate growth in the ad business, The Information reported.
As of June, ad sales and ad-supported subscriber numbers were running at about half of internal projections, according to the report.
That also comes amid reported grumbling in the ad industry that Netflix and ad-tech partner Xandr (MSFT) haven't done enough to promote the ad-supported service tier, and struggles bringing new ad formats and better ad targeting on line. Only about 10M subscribers are on the ads tier.
Gorman had joined the company from Snap just over a year ago, with an eye to getting the new service level a strong launch, and alongside heavy layoffs at Snap.
Netflix leadership has said advertising could in time make up more than 10% of overall revenue (some $3.2B based on last year's figures).
Netflix stock (NFLX) was a downside outlier in a generally higher Communication Services sector Tuesday at midday, down 2.3%.

More on Netflix

Netflix: Navigating A New Era - Balancing Content Spend In A Post-Explosive Growth Landscape
Netflix's Password-Sharing Crackdown Will Unlock Value
What Netflix Rules