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Netflix CFO Spencer Neumann gave Scott Stuber a shoutout when discussing the state of the streaming giant’s film operation, saying the exec deserves “a lot of credit” for “what he built.”
In an appearance Monday at the Morgan Stanley Tech, Media & Telecom Conference, Neumann was asked about the state of the company’s film efforts in light of the executive turnover. Stuber is leaving this month after nearly seven years to start his own media company. Dan Lin, a producer and exec known for his involvement with hits like The Lego Movie and the It franchise, is coming aboard in a top film role, reporting to Chief Content Officer Bela Bajaria.
Execs are “feeling really good about the film business,” Neumann said, though he noted that “it’s very difficult to ascribe a specific ROI on a specific genre or title of content in our subscription bundle.”
Film has “come a long way for us,” Neumann said, “and a lot of credit to Scott, for what he built over the last years, in terms of the quality and level of talent that we work with.”
Making original films has been a “nice success for us,” he said. “The return on investment is very similar to our other content categories. It’s a very important element of the entertainment that we deliver to our members.”
With Lin in the fold, “we’re excited to take it to the next level,” Neumann said. “Just like with everything we do, we’re trying to continuously improve. We’re going to build from there. I’m excited for what Dan’s going to bring. It’s not a change of strategy, per se. We’re just continuing to evolve and get better. Dan brings his amazing experience … I think he’s just going to bring another perspective. This business is so much about working with the best creative, the best people externally and internally and having a great process.”
The exec’s comments follow those of Co-CEO Ted Sarandos in January during the company’s fourth-quarter earnings call. Asked about Stuber’s exit (prior to Lin being identified as his replacement), Sarandos did not name Stuber in maintaining that the move was not a signal that Netflix planned to “change our strategy” in the film arena.
Unlike its tech rivals Amazon and Apple, Netflix has not been seduced by the power of theatrical. It has generally not budged from its 2-to-4-week window for its top titles before they migrate to streaming. Instead of pursuing box office revenue or buzz solely from theatrical runs, the company regards film as a way to attract and keep subscribers.
