Netflix hires two Snap executives to launch its version with ads

Netflix hires two Snap executives to launch its version with ads

Washington, Aug 30 – The internet entertainment giant Netflix signed two executives from the Snap social network to launch its subscription model with ads, according to specialized media on Tuesday and later confirmed by the company itself.

The executives are Jeremi Gorman, Snap’s chief business officer, and Peter Naylor, Snap’s vice president of sales for the Americas, who will join Netflix in September as president of worldwide advertising and vice president of advertising sales, respectively.

This same Tuesday, the specialized portal The Verge published that Snap, owner of the Snapchat photo application, plans to lay off 20% of its staff, which represents about 6,400 workers.

In mid-July, Netflix announced a partnership with Microsoft to develop its new low-cost, ad-supported subscription model revealed in April.

It is a modality that will complement the basic, standard and exclusive packages (without advertising), and for which Microsoft provides “flexibility”, “innovation” and “solid protection of customer privacy”, according to the company.

The decision to create a new low-cost subscription plan comes after Netflix’s loss of competitiveness in the streaming platform market has resulted in a slowdown in the pace of the company’s growth and has led to a significant reduction in its workforce.

Netflix lost almost a million subscribers (970,000 accounts) during the second quarter of the year, a period in which it obtained net profits of 1,441 million dollars, the company revealed in its latest earnings report published on July 19.

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