As per reports, Netflix has initiated preliminary talks to sell ads through partners other than Microsoft and has also presented them with improved deals.
According to a report from the Wall Street Journal on Thursday, Netflix is making changes to its advertising partnership with Microsoft for its lower-priced ad-supported subscription plan. As part of the restructuring, the streaming company is cutting ad prices.
Last year, Netflix introduced a $7 (approximately Rs. 560) per month plan with commercials in 12 markets, including the US, to attract more customers. Microsoft was chosen as the technology and sales partner for this offering, in part because it offered to provide a revenue guarantee.
However, due to the ad tier’s slowing growth, Netflix is now revising the agreement to reduce the revenue guarantee. The report further indicates that company executives are disappointed that Microsoft has not been able to sell more ad inventory.
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