Netflix Lowers Ad Prices, Restructures Partnership With Microsoft: Report

Netflix is reportedly in early discussions with other potential partners to sell ads alongside Microsoft.

Netflix is seeking to reduce the revenue guarantee and establish new terms.

Netflix is making changes to its advertising partnership with Microsoft by restructuring the agreement and lowering ad prices, as reported by The Wall Street Journal. The streaming giant had previously selected Microsoft as a partner last year to handle technology and ad sales on its behalf. One of the factors that led to this decision was Microsoft's offer of a "revenue guarantee," promising a substantial amount of money to Netflix.

However, as per the WSJ report, Netflix is now in early discussions with other potential partners to sell ads alongside Microsoft.

The report indicates that Netflix is currently renegotiating its agreement with Microsoft, seeking to reduce the revenue guarantee and establish new terms. However, specific details about the revised arrangement are yet to be finalised.

Meanwhile, Netflix has recently taken a significant step in India by implementing a policy to end password sharing, limiting account access only to members of a "Household". The company's decision is part of a broader global crackdown on password sharing beyond immediate family members, aimed at boosting revenue following a challenging period last year. In May, Netflix announced its determination to curb this practice, and the results have been encouraging.

It reported a notable increase in subscriptions, with nearly six million new users signing up in response to the password-sharing restrictions. As a result, Netflix now boasts a staggering total of 238 million subscribers worldwide and achieved an impressive profit of $1.5 billion in the most recent quarter.

A statement from Netflix clarified that all members living in the same Household could continue to enjoy access to the platform across various devices, including at home, while travelling, or during vacations. Additionally, they introduced new features like Transfer Profile and Manage Access and Devices to enhance the user experience.

To ensure compliance with the policy, Netflix has begun sending out emails to customers found to be sharing their accounts beyond their Household. This action is part of the company's efforts to create a level playing field for all users and to preserve the integrity of its subscription model.