What happened
Shares of the video-streaming company were rising today after Netflix (NFLX 1.10%) confirmed to The Wall Street Journal yesterday that it's in partnership talks with multiple companies to build out an ad-supported video streaming tier.
The tech stock was up by 4.5% as of 2:15 p.m. ET.
So what
Netflix's co-CEO Ted Sarandos said he wanted his company to move quickly into this space and then make any necessary changes as it needs to, adding that he wants the ultimate product to be "better than TV."
Image source: Getty Images.
Netflix has been vocal about creating an ad-supported tier after reporting disappointing subscriber numbers in the first quarter of this year. And with Netflix's management now confirming that it's talking to potential advertising partners, investors were hopeful today that the company is moving quickly toward offering the new service.
NASDAQ: NFLX
Key Data Points
Now what
There have already been reports that Netflix could launch its new ad-supported tier by the end of this year, and in light of Sarandos' recent comments, the company could be on track with that timeline. Even if it takes a bit longer than that to get the service up and running, it's clear from investors' reaction today that Netflix shareholders are excited about the company's move into this space.
Netflix's share price is still down more than 62% over the past 12 months, so any news that the company is working to boost subscriber numbers is certainly welcomed by its investors.
