Disruptive Tech Research founder and chief analyst Lou Basenese weighs in on the future of Netflix.
CEO Reed Hastings was adamant for years they would never add ads to the platform, and now guess what? They're going to have a lower cost option that has ads which defeats the entire purpose of streaming, right? That was the appeal in the golden days of streaming, coming out, is that we could stream whatever we wanted and fast-forward through ads or not have to view them
at all. And now, basically in the name of profitability, they're going to start bringing back ads. That is absolutely going to impact the growth. Those analyst numbers, and even the company's numbers, for two million subscriber growth dropping, I think those are going to be conservative. You've got a lot more bleeding coming here, both from the stock and the business itself.
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