“It’s definitely the end of linear TV in the next five to 10 years,” Hastings said, discussing Netflix’s financial and subscriber results in the taped Q&A, which came shortly after revealing the streamer lost 970,000 subscribers in the second quarter . That 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 at the helm of the world’s largest streamer — and they carry data that Netflix touted earlier Tuesday. Click here to subscribe to Variety’s free Strictly Business newsletter covering earnings, financial and investment news and more. In a letter to shareholders analyzing its second quarter performance, Netflix wrote: “in the US, which is one of the most competitive markets in the world, we captured more viewing time than any other outlet during the 2021-22 TV season nearly equaling the combined total from the two most-watched broadcast networks.” He added: “And, as Nielsen will announce Thursday, our share of the U.S. viewership reached an all-time high of 7.7% in June ( versus 6.6% in June 2021), demonstrating our ability to grow our engagement share as we continue to improve our services.” See the chart published in Netflix’s Q2 earnings report, data reported by Nielsen, at the bottom of this post. Also during the second quarter call, Netflix executives updated the streamer’s cash content spending plan as it continues to make budget-driven choices while trying 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 having spent about $17 billion on content, instead of $18 billion previously predicted. Netflix plans to launch its cheapest ad-supported option in early 2023. The streamer has struck an exclusive deal with Microsoft to help create that tier, promising it won’t look like an ad on TV shows. “We’re optimistic that within a few years we can deliver an experience that’s fundamentally different from the advertising experience on linear networks in a way that’s meaningfully beneficial to all stakeholders,” said Netflix Chief Product Officer and CEO Greg Peters. the earnings interview.
VIP+ analysis: A looming recession weighs on advertising
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