Netflix Is Talking to Google About an Ad Partnership
We already knew Netflix was laying the groundwork for an ad-supported subscription option, but now we know who may end up providing those ads.
As Reuters reports(Opens in a new window), Netflix co-CEO Ted Sarandos confirmed at the Cannes Lions International Festival today that two companies are in the running for potential partnerships. It should come as no surprise Google is one of them, the other is NBCUniversal.
Such discussions fly in the face of reports that Netflix is considering acquiring Roku, which already has an established and growing ad business. Instead, it looks as though Netflix wants to hand-off ad provision to a third-party rather than handling it internally. For now, no one other than Netflix is commenting.
Sarandos also confirmed that introducing ads would have no impact on existing Netflix subscribers or the streaming experience they enjoy. Instead, he said, "We're adding an ad tier for folks who say 'hey, I want a lower price and I'll watch ads.'" I'd argue it will have an impact in the form of some existing subscribers deciding to save cash and opt for an ad-supported subscription instead.
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