Netflix is prepping for the upcoming launch of its first ad-supported tier, snagging two Snapchat executives to spearhead advertising operations.
Beginning in late September, Snap Chief Business Officer Jeremi Gorman will join Netflix as president of worldwide advertising. While Peter Naylor, Snap’s VP of sales in the Americas, will serve as Netflix’s VP of advertising sales.
News of the hires was initially reported by AdAge. Gorman wrote in a LinkedIn post she was “eager to build an incredible team, and to help bring great ad experiences to members and the advertising community.”
Prior to her role at Snap, Gorman spent six years at Amazon serving as head of advertising sales in various capacities. Naylor has served as an ad sales executive for Hulu and NBCUniversal.
“Jeremi’s deep experience in running ad businesses and Peter’s background in leading ad sales teams together will be key as we expand membership options for consumers through a new ad-supported offering,” said Netflix COO Greg Peters in a statement, per AdAge's report.
Gorman and Naylor’s exit from Snap comes after the social media company announced plans to lay off about 20% of its staff – comprising of over 6,400 employees. Netflix made employee cuts after facing significant subscriber losses in the first quarter.
Netflix’s new hires are among a series of executive leadership shake-ups this week. Jane Horvath, Apple’s chief privacy officer, is departing the tech company to join the Gibson, Dunn & Crutcher LLP lawfirm, per Seeking Alpha.
YouTube also announced its long-time chief business officer Robert Kyncl is resigning, with Google’s Mary Ellen Coe to take his place.
The media is buzzing with interest on how Netflix’s ad plan will turn out. Last week’s Bloomberg report said Netflix is considering pricing the ad-supported tier at $7 to $9 per month, planning to sell about four minutes of commercials per hour.
But the price tag isn’t set in stone. Netflix told The New York Post Monday Bloomberg’s report was “speculation” and executive leadership is still mulling a price point for the tier.
Additionally, Netflix may keep new movie releases and children’s programming ad-free, also per a Bloomberg report.
The streamer in July selected Microsoft as its global advertising and sales partner, in an attempt to more seamlessly enter the ad-supported business.