There was a time when broadcasters lured potential customers with the promise of an ad-free experience. But in recent years, Netflix, Amazon, Disney and many more have raised their prices and raised prices ad-supported tier is the most cost-effective option. Now Netflix is taking the next step toward becoming a de facto ad tech company by moving its development in-house. according to The Hollywood Reporter.
Netflix announced the change during a preview in which the company shared that its $7 per month ad-supported tier has 40 million monthly active users. The ad-supported plan reportedly gets 40 percent of new signups and had 15 million users just six months ago, in November.
The streaming company relied heavily on Microsoft to achieve this success. Cooperation with the technology giant in 2022 on advertising and sales. However, the training wheels come with Netflix’s choice to move things in-house, which will “allow us to power our ad plan with the same level of excellence that makes Netflix a leader in streaming technology today,” Netflix advertising chief Amy Reinhard said. Microsoft will no longer be Netflix’s only ad tech partner, as the streamer will begin working with the likes of Google’s Display & Video 360 and The Trade Desk later this summer.
