Netflix Isn't Making a $14 Billion Mistake
Few Wall Street pros get the streaming landscape better than Needham's Laura Martin. She was an early believer in Roku (NASDAQ: ROKU) back when everyone else thought it was just a dongle maker. She had faith in fuboTV (NYSE: FUBO) when it was fashionable to be bearish on the live-TV streaming specialist.
Last week, she was critical of Netflix (NASDAQ: NFLX) and its stance on refusing to run advertising. Unlike its rivals that offer cheaper ad-supported subscriptions -- or platforms including Roku and fuboTV that just work marketing missives into their business models for all viewers -- Netflix has avoided the siren song of Madison Avenue.
Needham feels that Netflix is making a mistake by not adding ads. The connected-TV advertising market is blowing up, and in her latest research note, she laments the money that Netflix is leaving on the table by focusing more on the subscriber experience than generating incremental revenue.
Source Fool.com
