Netflix Turns to Ads to Free Itself From ‘Value Trap’
- Ads seen contributing at least $500 million in quarterly sales
- Second-quarter results to show big subscriber losses
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Netflix Inc.’s stock has looked cheap for months and yet buyers discovered to their dismay that it just kept getting cheaper. Now bulls say the video-streaming giant is on the verge of proving that it’s an actual value stock and not a value trap.
The launch of a much-anticipated advertising supported service this year, plus a crackdown on password sharing, could help reverse the company’s shocking subscriber losses and provide a new revenue stream, the thinking goes.