THB #123: Netflix Day, 3 of 4: Earnings Call

That call was like a piñata. Doug Anmuth (from JP Morgan) wasn’t trying to kill anyone, but he wasn’t taking lazy swings. And every time he hit the Netflix piñata, more candy.

Then 16 minutes and 42 seconds into the “call,” the sweetest candy leapt from the piñata without a question even being on the table. Reed Hastings interrupts Spencer Neumann to offer up the potential - really, likelihood - that Netflix will be adding an advertising- based tier. And not just for the rest of the world, where pricing is a big problem… for the United States.

“Greg’s done a great job with price spread. And one way to increase the price spread is advertising on low-end plans. And to have lower prices with advertising. And those who have followed Netflix know that I’ve been against the complexity of advertising and a big fan of the simplicity of subscription. But as much as a fan I am of that, I am a big fan of consumer choice. And allowing consumers who would like to have a lower price and are advertis…