Netflix (NFLX) reported its second-quarter earnings results, alongside announcing plans to discontinue its cheapest ad-free plan in the US and France. Citi managing director Jason Bazinet joins Wealth! to discuss this decision.

Bazinet notes that Netflix's restructuring efforts are "complicated" as the company strives for profitability. However, he highlights that the ad-tier business has been "consistent with our expectations," with growth in sales, albeit under-monetized. The key question on the Street's mind now is "can they close that monetization gap by generating more ad dollars off of those ad-tier subscribers?"

On the content front, Bazinet notes that Netflix needs to highlight expansion worldwide. "The North Star for Netflix is how can they crack the code on spending a dollar on content and having that content resonate globally," Bazinet tells Yahoo Finance. "Right now they're a little bit stuck where they're spending money to gain consumers and viewership in a particular country, but most of those shows aren't traveling around the world."

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This post was written by Angel Smith