Netflix announced that it’s launching its own advertising technology platform only a year and a half after entering the ads business. This move pits it against other industry heavyweights with ad servers, like Google, Amazon and Comcast.
The announcement signifies a significant shake-up in the streaming giant’s advertising approach. The company originally partnered with Microsoft to develop its ad tech, letting Netflix enter the ad space quickly and catch up with rivals like Hulu, which has had its own ad server for over a decade. With the launch of its in-house ad tech, Netflix is poised to take full control of its advertising future.
Netflix also noted that it’ll expand its buying capabilities this summer, which will now include The Trade Desk, Google’s Display & Video 360 and Magnite as partners. Notably, competitor Disney+ also has an advertising agreement with The Trade Desk.
Netflix also touted the success of its ad-supported tier, reporting that 40 million global monthly active users opt for the plan. The ad tier had around 5 million users within six months of launching.
Netflix has remained one of the few digital video streaming platforms that didn’t have ads, but that is now changing. It’ll be interesting to see how the strategic partnerships with several companies, including those who are working with their competitors, will turn out. As the first and arguably most popular exclusive digital video streaming service, their subscriber total internationally will have to adjust as Netflix moves into a new frontier.