Netflix looking for top exec for its ad business

Netflix is looking for an executive to man the development of an ad-supported tier of its service and has interviewed applicants, according to sources familiar with the situation.

Among the contenders is Pooja Midha, chief growth officer of Comcast Corp.'s CMCSA advertising unit, who has had extensive interviews with Netflix in recent weeks, according to reports.

The executive chosen by Netflix for the position will have an uphill task in hand as the streamer attempts to introduce advertisements to its service for the first time. As it reported its first quarterly subscriber drop in more than a decade in April, the firm indicated it was considering introducing a lower-priced ad-supported version.

Netflix has been in talks with possible partners such as Comcast and its NBCUniversal subsidiary, as well as Alphabet Inc.'s Google, regarding the ad technology and sales force it requires.

According to sources familiar with the conversations, Netflix has contemplated developing an ad-supported alternative for each of its three tiers of service, which offers differing degrees of image quality and the number of screens that can be used concurrently. According to one of the sources, the corporation is willing to split advertising earnings with a partner who assists it in entering the ad sector.

"We are currently in the early stages of considering how to provide a lower cost, ad supported version," a Netflix representative said.

Netflix co-CEO Ted Sarandos stated last month that the firm desired a simple entry into the ad market and would grow its business from there. He also stated that Netflix is striving to provide a less disruptive ad experience than traditional television commercials.

According to sources with knowledge of internal conversations, executives want to develop an ad-supported tier that existing customers can opt for and that does not drive consumers to abandon Netflix. Because of the size of its subscriber base and the kind of engagement viewers have with the platform, the streamer intends to appeal to large marketers as a high-quality venue to buy commercials, according to one of the sources.