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- Netflix is ad-free and plans to stay that way, the company reminded its investors on Wednesday by announcing less-than-expected growth in the number of subscribers for the second quarter.
- "When you read speculation that we are going to sell advertising, be sure this is not true," the company said in a letter to shareholders.
- Visit the Business Insider home page for more stories.
Netflix is ad-free and will probably stay that way.
The streaming video giant said it still had no plans to start selling advertising, in a letter to shareholders Wednesday, which also announced weaker-than-expected growth in the number of videos. Subscribers for the second quarter.
Read more: Netflix plummets by more than 10% after a huge lack of growth in the number of subscribers in the second quarter
The speculation was renewed after media officials at the annual Cannes Lions advertising festival debated whether Netflix should eventually enter the advertising business, CNBC reported.
Nomura badysts also said in June that a free, ad-supported set similar to Spotify's freemium model could bring Netflix about $ 1 billion more per year.
Read more: Netflix Could Significantly Reduce Cash Consumption with Spotify Model Including Free Advertising-Funded Level
"When you read speculation that we are going to sell advertising, be sure this is wrong," Netflix said in its investor note. "We are confident that we will have a more interesting business in the long term by avoiding competition for advertising revenues and by focusing entirely on the competition for the satisfaction of viewers."
The company is compared to the high-end television network HBO, which also does not broadcast commercials.
Netflix has recently collaborated more publicly with brands in different ways, including through marketing and partnerships to promote its original programs and films. But he said that these relationships were not meant to earn more money.
Netflix said it "maximizes fan and viewer engagement on revenue maximization", including through its co-marketing agreements with companies such as Coca-Cola, Burger King and Baskin- Robbins, following the recent return of "Stranger Things".
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