Netflix Reworks Microsoft Pact, Lowers Ad Prices: Report
Netflix Reworks Microsoft Pact, Lowers Ad Prices: Report
Netflix is restructuring its advertising partnership with Microsoft and lowering ad prices, the Wall Street Journal reported on Thursday.

Netflix is restructuring its advertising partnership with Microsoft and lowering ad prices, the Wall Street Journal reported on Thursday.

Netflix has had early discussions to sell ads through other partners in addition to Microsoft, WSJ said, citing people familiar with the matter.

The streaming company selected Microsoft last year to provide technology and sell ads on its behalf, in part because Microsoft offered to pay a ”revenue guarantee,” pledging to deliver a large amount of money to Netflix, the report said.

Netflix is also reworking its agreement with Microsoft to reduce the revenue guarantee and those terms are still being settled, the report added.

Microsoft and Netflix did not immediately respond to a Reuters’ request for comment.

In related news, Netflix, earlier this month, removed its basic plan in the U.S. and UK in which users could watch shows and movies without commercials, as the company tries to draw more subscribers to its ad-supported tier.

The company said on its website the $9.99-a-month basic plan would no longer be available for new or rejoining members. Users who are already on the plan could continue to remain on it until they change plans or cancel their account.

The streaming video pioneer had launched a $7-per-month option with commercials last November in 12 markets, including the U.S., as an alternative to ad-free plans. It was designed to attract more customers and add a new revenue stream as competition for online viewers intensified.

Netflix had also cracked down on households sharing passwords in May and forced users who share an account outside the same home to pay an additional fee, which in turn triggered droves of users to sign up for its cheaper ad-tier base.

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