Netflix and Yahoo announced a partnership on Monday that will allow prospective ad buyers to purchase programmatic connected TV inventory through Yahoo DSP.
The deal covers all 12 regions where Netflix offers the low-cost, ad-supported version of its streaming service, which is priced around $8 per month in the United States and costs about the same in local currency in other parts of the world.
“This is another milestone for the ads business, giving our global clients even more optionality in their buying,” Amy Reinhard, Netflix’s President of Advertising, said on Monday. “Our focus has always been to offer the best advertising experience to our clients and members, and we’re excited to continue to give advertisers the ability to reach the most engaged and attentive ad-supported viewers.”
Yahoo DSP is the latest advertising platform to buddy up with Netflix. Other ad partners include The Trade Desk, Google Display and Video 360, as well as Microsoft, which was the flagship advertising partner for Netflix when the streamer introduced its ad-lite tier a few years ago.
Ads are becoming a bigger part of Netflix’s business as the service’s subscriber count has largely flattened out over the past few consecutive quarters. In the United States, its subscriber count peaked about two years ago, according to data analyzed by The Desk; the service’s subscriber growth opportunities exists mainly in overseas markets, including Asia-Pacific, where it continues to add customers.
On account of its subscriber growth peaking, Netflix has focused more on its advertising business as a way to generate revenue off its customers twice — first from subscription sales, and again from commercial breaks that run before and during most Netflix shows and movies.
Some analysts believe Netflix’s advertising revenue will grow to around $6 billion by 2027 and to nearly $10 billion by 2030, making it one of the largest streaming media companies by ad revenue, eclipsed only by Google-owned YouTube. One in 10 Netflix customers is believed to be on the ad-supported tier, according to data from eMarketer, and more than half of new sign-ups to Netflix are on that plan.
Yahoo stands to benefit from its partnership by Netflix by becoming a more-premium destination for brands who are looking to run their campaigns through programmatic inventory against the streaming platform and others. In addition to Netflix, Yahoo DSP also counts SiriusXM, LG, Samsung, Vizio, Fox Corporation, Warner Bros Discovery, the Walt Disney Company, A+E Global Media, AMC Networks, Univision, DirecTV and Spotify among its partners.
“We’re excited to bring Netflix’s premium ad-supported inventory to Yahoo DSP clients, offering access to highly engaged audiences in a trusted, brand-safe environment,” Alia Lamborghini, the Senior Vice PResident of Global Revenue at Yahoo DSP, said on Monday. “This integration makes it easy for advertisers to incorporate Netflix into their broader CTV strategies without added complexity. By expanding our premium supply and enabling unified planning, activation, and measurement, we’re helping marketers drive stronger performance and greater impact.”
