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Internet entertainment giant Netflix signed two executives from the social network Snap to launch its subscription model with ads, according to specialized media on Tuesday and later confirmed by the company itself.
The executives are Jeremi Gorman, Snap’s head of business, and Peter Naylor, Snap’s vice president of sales for the Americas, who will join Netflix in September as president of worldwide advertising and vice president for advertising sales, respectively.
Just this Tuesday, the specialized portal The Verge published that Snap, owner of the Snapchat photo app, plans to lay off 20% of its workforce, representing some 6,400 workers.
In mid-July, Netflix announced a partnership with Microsoft to develop its new low-cost subscription mode with the inclusion of advertising.
It will complement the basic, standard, and exclusive (ad-free) packages, with Microsoft providing “flexibility,” “innovation” and “robust customer privacy protections,” according to the company.
The decision to create a new low-cost subscription plan comes after a loss of competitiveness of Netflix in the market of streaming platforms that has resulted in a slowdown in the pace of growth of the company and has led to a significant reduction in its workforce.
Netflix lost almost one million subscribers (970,000 accounts) during the second quarter of the year, a period in which it obtained net profits of 1,441 million dollars, the company revealed in its latest results report published on July 19.
