There was a time when streamers lured potential customers with the promise of an ad-free experience. But in recent years, companies like Netflix, Amazon, and Disney have increased their prices, making ad-supported tiers the most affordable option. According to The Hollywood Reporter, Netflix is now taking the next step toward becoming the de facto ad tech company by moving development in-house.
Netflix announced the transition during an upfront preview, in which the company also shared that its $7 per month ad-supported tier has 40 million monthly active users. This ad-supported plan reportedly accounts for 40% of new registrations, and just six months ago, it had 15 million users as of November.
The streaming company has relied heavily on Microsoft to achieve this success, and will partner with the tech giant for advertising and sales in 2022. But the training wheels are coming off with Netflix's choice to take things in-house, a choice that will allow it to drive its advertising plans with the same level of excellence that has made Netflix the leader in streaming technology it is today. ” said Amy, head of advertising at Netflix. Reinhardt said. Microsoft will also no longer be Netflix's only ad tech partner, as Netflix will begin working with companies like Google's Display & Video 360 and The Trade Desk later this summer.
