Netflix CEO Reed Hastings Says Company’s Model Inoculates It From Tech’s Privacy Woes

In the wake of Facebook’s data scandal with Cambridge Analytica, people have gotten even more paranoid about who has access to their personal data and what they’re using it for.

During Netflix’s quarterly earnings interview on Monday, Netflix chief Reed Hastings was asked by Morgan Stanley analyst Ben Swinburne how the new focus by regulators and consumers might impact the streaming giant.

Hastings is pretty confident it won’t.

Also Read: Netflix Exec Bonuses Were a Sham to Capitalize on Tax Deductions, Shareholder Lawsuit Says

“Well I’m very glad that we’ve built a business not to be ad supported but to be subscription. We’re very different from the ad supported businesses and we’ve always been very big on protecting all of our members’ viewing,” Hastings said, reiterating that Netflix doesn’t sell ad space on the platform. “I think we’re substantially inoculated from the other issues that are happening in the industry, and that’s great.

“Second, I’d point out that we’ll spend over $10 billion on content and marketing and $1.3 billion on tech so just objectively we’re much more of a media company in that way than pure tech, ” he continued. “Now, of course, we want to be great at both, but again, we’re really pretty different from the pure tech companies.”

In a March interview with Recode’s Kara Swisher, Apple boss Tim Cook said: “I wouldn’t be in this situation,” referring to Facebook CEO Mark Zuckerberg

Also Read: Mark Zuckerberg Hit Back at ‘Extremely Glib’ Apple Boss Tim Cook

He also noted that Apple’s business is fundamentally different from the ad-driven juggernaut Zuckerberg built. “The truth is, we could make a ton of money if we monetized our customer — if our customer was our product,” Cook added. “We’ve elected not to do that.”

During Netflix’s 2018 first quarter ending on March 31, it reported revenue of $3.7 billion and earnings of 64 cents a share, just edging analyst estimates of 63 cents a share and $3.69 billion in revenue. The Los Gatos, California-based company increased revenue 43 percent year-over-year.

Also Read: Netflix Stock Surges on Huge Q1 Subscriber Growth

The key for investors was the 1.96 million U.S. subscribers and 5.46 million internationally that Netflix added during the quarter. Those additions pushed the company past 124 million overall members. Analysts had anticipated 1.45 million domestic subs and 4.9 million internationally.

Netflix’s international subscriber base now accounts for 50 percent of the company’s revenue, Netflix said in a statement.

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In the wake of Facebook’s data scandal with Cambridge Analytica, people have gotten even more paranoid about who has access to their personal data and what they’re using it for.

During Netflix’s quarterly earnings interview on Monday, Netflix chief Reed Hastings was asked by Morgan Stanley analyst Ben Swinburne how the new focus by regulators and consumers might impact the streaming giant.

Hastings is pretty confident it won’t.

“Well I’m very glad that we’ve built a business not to be ad supported but to be subscription. We’re very different from the ad supported businesses and we’ve always been very big on protecting all of our members’ viewing,” Hastings said, reiterating that Netflix doesn’t sell ad space on the platform. “I think we’re substantially inoculated from the other issues that are happening in the industry, and that’s great.

“Second, I’d point out that we’ll spend over $10 billion on content and marketing and $1.3 billion on tech so just objectively we’re much more of a media company in that way than pure tech, ” he continued. “Now, of course, we want to be great at both, but again, we’re really pretty different from the pure tech companies.”

In a March interview with Recode’s Kara Swisher, Apple boss Tim Cook said: “I wouldn’t be in this situation,” referring to Facebook CEO Mark Zuckerberg

He also noted that Apple’s business is fundamentally different from the ad-driven juggernaut Zuckerberg built. “The truth is, we could make a ton of money if we monetized our customer — if our customer was our product,” Cook added. “We’ve elected not to do that.”

During Netflix’s 2018 first quarter ending on March 31, it reported revenue of $3.7 billion and earnings of 64 cents a share, just edging analyst estimates of 63 cents a share and $3.69 billion in revenue. The Los Gatos, California-based company increased revenue 43 percent year-over-year.

The key for investors was the 1.96 million U.S. subscribers and 5.46 million internationally that Netflix added during the quarter. Those additions pushed the company past 124 million overall members. Analysts had anticipated 1.45 million domestic subs and 4.9 million internationally.

Netflix’s international subscriber base now accounts for 50 percent of the company’s revenue, Netflix said in a statement.

Related stories from TheWrap:

Ian Somerhalder to Lead Netflix Vampire Drama Series 'V-Wars'

Top 25 Best Netflix Original Series, Ranked From Great to Phenomenal (Photos)

Marvel's 'Jessica Jones' Gets Third Season at Netflix

European Cinema Admissions Hit 1.27 Billion in 2016

European cinema admissions hit an estimated 1.27 billion in 2016, their highest levels in recent decades, according to early estimates from the European Audiovisual Observatory. E.U. member states accounted for a collective 994 million ticket sales, up 1.6% on 2015’s 978 million and the highest admissions recorded in the E.U. since 2004. The public service… Read more »

European cinema admissions hit an estimated 1.27 billion in 2016, their highest levels in recent decades, according to early estimates from the European Audiovisual Observatory. E.U. member states accounted for a collective 994 million ticket sales, up 1.6% on 2015’s 978 million and the highest admissions recorded in the E.U. since 2004. The public service... Read more »

Chinese Metals Firm Xinke Buys Voltage Pictures for $345 Million

Xinke New Materials, a Chinese metals firm, has acquired an 80% stake in the parent company of Oscar-winning production and sales firm Voltage Pictures. Reuters reported that the Anhui-based copper processor this year set up a media investments arm Wotaiji International Media. Hong Kong-based Wotaiji is to buy the majority of Midnight Investments, the holding… Read more »

Xinke New Materials, a Chinese metals firm, has acquired an 80% stake in the parent company of Oscar-winning production and sales firm Voltage Pictures. Reuters reported that the Anhui-based copper processor this year set up a media investments arm Wotaiji International Media. Hong Kong-based Wotaiji is to buy the majority of Midnight Investments, the holding... Read more »