Netflix Lowers Ad Prices For Ad-Supported Business After Microsoft Pact Fails To Deliver
Portfolio Pulse from Anusuya Lahiri
Netflix has restructured its advertising pact with Microsoft and reduced ad prices to boost its ad-supported business. The streaming company launched a $6.99-a-month ad-supported option in 2022, with Microsoft as its ad partner. However, Microsoft failed to sell the requisite ad inventory, leading to a payout under the guarantee. Netflix is now offering advertisers better deals and is exploring ways to make it easier for advertisers to purchase ad space. It is in discussions with ad-tech companies, including The Trade Desk and Comcast Corp's FreeWheel, to sell Netflix ad space.
July 27, 2023 | 1:36 pm
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NEGATIVE IMPACT
Microsoft's failure to sell the requisite ad inventory under its pact with Netflix could negatively impact its reputation in the ad market.
Microsoft's failure to sell the requisite ad inventory could negatively impact its reputation in the ad market, potentially leading to a decrease in its stock price.
CONFIDENCE 80
IMPORTANCE 65
RELEVANCE 75
POSITIVE IMPACT
Comcast Corp's FreeWheel could potentially benefit from discussions with Netflix to sell ad space.
Comcast Corp's FreeWheel's potential partnership with Netflix to sell ad space could boost its revenues and positively impact its stock.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Netflix's restructuring of its advertising pact with Microsoft and reduction in ad prices could potentially boost its ad-supported business.
Netflix's decision to lower ad prices and restructure its pact with Microsoft could attract more advertisers, potentially boosting its ad-supported business and positively impacting its stock.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100
POSITIVE IMPACT
The Trade Desk could potentially benefit from discussions with Netflix to sell ad space.
The Trade Desk's potential partnership with Netflix to sell ad space could boost its revenues and positively impact its stock.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50