Shares of Netflix (NASDAQ:NFLX) were notably weaker Tuesday, falling 3.3% versus the 0.5% gain in the S&P 500. Analysts are pointing to a mid-day article from The Information about problems with ad sales and ad-supported subscribers.
According to the report, transforming Netflix into an advertising powerhouse has presented more challenges than the streaming giant initially anticipated.
Netflix's co-CEO Greg Peters has opted to replace Jeremi Gorman, the head of ad sales, with Amy Reinhard, a seasoned Netflix executive, with the aim of expediting the growth of the advertising division, The Information reported, citing people familiar with the situation.
Around June, it was noted that Netflix's ad sales and the number of ad-supported subscribers were approximately half of the internal projections set for 2023, one of the sources said.
Netflix is scheduled to report its third-quarter earnings on October 18th after the market close.