Netflix Chief Reed Hastings Says 'The End Of Linear TV' Is Approaching 'In The Next 5-10 Years'

Netflix co-CEO Reed Hastings said during the streamer's second quarter earnings interview on Tuesday that linear TV will follow the path of the dinosaur over the next decade.

"It's definitely the end of linear TV for the next 5-10 years," Hastings said while discussing Netflix's financial results and subscribers on the pre-recorded Q&A, which followed the reveal that the streamer lost 970,000 subscribers in Q2. This loss was actually a win for Netflix, which originally expected to lose 2 million subscribers by the end of June 30.

While very bold, Hastings' thoughts on the state of linear TV come as no shock given his position atop the world's largest streamer - and they carry over the data touted by Netflix earlier on Tuesday. .

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In a letter to shareholders describing its second quarter performance, Netflix wrote "in the United States, which is one of the most competitive markets in the world, we have attracted more television viewing time than any other outlet during the 2021-22 TV season. nearly matching the combined total of the two most-watched broadcast networks," adding, "And, as Nielsen will announce on Thursday, our TV viewing share reached an all-time high of 7.7% in June (vs. 6.6% in June 2021), demonstrating our ability to increase our share of engagement while continuing to improve our service."

See graph published in Netflix's Second Quarter Revenue Report, data quoted to Nielsen, at the bottom of this article.

Also during the Q2 interview, Netflix executives provided an update on the streamer's cash-spending plan as it continues to make budget-conscious choices while looking to rebuild its market capitalization. CFO Spencer Neumann said cash content spending for 2023 will be at "similar levels" to this year, noting that Netflix actually expects to end 2022 after spending around $17 billion on content. , rather than the previously projected $18 billion.

Netflix plans to launch its cheaper, ad-supported option in early 2023. The streamer has struck an exclusive pact with Microsoft to help grow that tier, promising it won't look like commercials. television.

"We are confident that within a few years, we will be able to deliver a fundamentally different experience from the linear network advertising experience, in a way that fundamentally benefits all stakeholders," said Greg, Chief Product Officer and Chief Operating Officer of Netflix. said Peters during the earnings interview.

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