Netflix Reviewing Its Ad Strategy

Now the company is considering ‘build or buy’ pivots away from Microsoft

After Netflix decided to add a lesser costly tier with ads last July, the company announced a partnership with Microsoft as part of a pact expected to generate billions in advertising revenue for the online streaming service. It didn’t work as smoothly as expected, and now Netflix is considering alternative options on how to run its operations with potential outcomes, including the streaming giant in-housing its ad tech.

The piece of news appears in the online magazine Digiday.  Ronan Shields writes that Netflix “has begun exploring potential options over its suite of advertising technology in a recent series of moves that includes retaining the services of high-profile expert advisors.

According to separate sources, Netflix and Microsoft’s current advertising pact is set to run for two years, with the potential results of its current course of action, including Netflix building or buying its tech.

Spokespeople for Microsoft and Netflix declined to comment when asked about the pairing’s ad tech partnership duration.

Source: Digiday