Netflix could partner with Google or NBCU for adtech says report

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NBCUniversal and Google have been tipped as the potential partners for Netflix’s ad-supported tier.

The cheaper version of Netflix, which could launch before the end of the year, announced that it would introduce an advertising-supported tier in the wake of its Q1 earnings in which it lost subscribers for the first time in a decade.

According to the Wall Street Journal, sources close to the streamer have said that NBCU and Google have emerged as the favourites to work with Netflix to create the ad product, though development is still in its early days.

The report notes that a partnership with NBCU would involve revenue-sharing, while Comcast-owned ad unit FreeWheel would supply the technology to power the platform. Google meanwhile, which already has a commercial relationship with Netflix, would bring its own ad-serving tech and currently serves as Disney’s DTC adtech partner across Hulu and Disney+.

Both companies are thought to want an exclusive partnership with Netflix.

The report also notes that Roku held early talks with Netflix, but the streaming device maker is not thought to be a major contender for Netflix’s services. 

A spokesperson for Netflix told the WSJ: “We are still in the early days of deciding how to launch a lower-priced, ad-supported option and no decisions have been made.”