Netflix is restructuring its advertising partnership with Microsoft. The streaming app is also lowering ad prices, according to a Wall Street Journal report. Netflix will start selling ads through other partners in addition to Microsoft.
Netflix partnered with Microsoft in 2022 to provide technology and sell ads on its behalf, in part because Microsoft offered to pay a revenue guarantee. Netflix is reworking its agreement with Microsoft to reduce the revenue guarantee and those terms are still being settled, cited WSJ.
The video streamer launched its ad-supported plan in 2022 across 12 markets, not including India. Recently, Netflix ended its password sharing in India. The video streaming app sent out emails to its subscribers in India asking to not share their passwords with people outside their ‘households’. This is a part of their strategy to accelerate revenue through subscription and subscription tiers that includes ads, and a crackdown on password sharing which is prevalent at scale in the country.
Read more: Netflix password sharing: Subscribers not willing to pay additional fee to share account