Comcast and Google emerge as main competitors to serve ads on Netflix

Comcast And Google Emerge As Main Competitors To Serve Ads On Netflix

Comcast’s subsidiary NBCUniversal and Google are the “top candidates” to serve ads on Netflix as streaming services roll out planned ad support, the Wall Street Journal reported on Wednesday. Netflix “is in the early stages of strategic development and has considered several partnerships in recent weeks,” the WSJ cites people familiar with the matter.

The deal with NBCUniversal could mean that “Comcast’s video ad unit FreeWheel will provide technology to help serve ads, and NBCUniversal’s ad sales team will help sell ads in the United States and Europe.” The report claims it is high. Of course, Alphabet-owned Google has a wealth of experience serving ads, including its own video platforms YouTube and YouTube TV. Netflix is ​​already using Google’s ad-buying tools.

Transactions with NBCUniversal or Google are likely to be unique, according to a WSJ report. Comcast/NBCUniversal and Google aren’t the only competitors, as “Roku also spoke early with Netflix about advertising partnerships,” the report said. Netflix executives recently said, “We’ve met with representatives from Roku and Comcast, and these companies have arranged to handle ad sales or technical infrastructure for Netflix’s upcoming ad support service, according to information last week. . We talked. “

According to an information report, Netflix “is aiming to launch pre-roll ads that will run before the show starts in Q4.” Netflix also negotiates with entertainment companies to place ads showing that Netflix is ​​not creating itself. According to information reports, licensing TV shows and movies for ad-free and ad-streaming only costs about 20% more than Netflix for ad-free streaming alone.

A spokeswoman for Netflix told the WSJ and The Information that the company “has not yet decided how to launch an option to support advertising at a lower price and no decision has been made.”

Netflix has resisted advertising for years

After years of advertising resistance, Netflix CEO Reed Hastings announced plans for ad support in April. Netflix’s stock price is down 35% on the day of its announcement, and Netflix’s revenue growth is slowing amid a decline in subscriber numbers.

Netflix says it will continue to offer ad-free streaming as well as cheaper ad-free options. Netflix prices in the US currently range from $9.99 to $19.99 per month.

Hastings initially said the ad support tier was “trying to figure it out in the next year or two,” but Netflix later said it plans to release a tier to support ad support by the end of this year. I told you.

Netflix will roll out additional charges for sharing accounts with people in other homes at the same time. This fee is already charged in Chile, Costa Rica and Peru, but not as much as in the remaining 190 countries where Netflix offers streaming.

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