Will the phoenix soon be streaming from the ashes? New advertising partnerships at Netflix and other providers.
It’s no secret that life isn’t easy for many providers of streaming services right now. But Netflix and Disney recently took the market by surprise with some clever moves. Find out everything you need to know about the new advertising partnerships here.
The giants of the streaming world forge new advertising partnerships
Many streaming providers are currently in crisis. After years of growth, the numbers are now dipping for the first time – and sometimes falling fast. In the past quarter, for example, Netflix saw a drop of over 970,000 subscribers. Netflix actually anticipated an even higher withdrawal rate. The reason is clear: More and more competitors are entering the streaming market and vying for customers. New concepts are therefore needed to retain existing users and attract new viewers.
At Netflix, the plan to offer ad-supported subscription models at comparatively cheaper prices is designed to make a difference. However, this requires specialized technical expertise – and the right tech partner. For Netflix and many other major streaming companies, questions inevitably arose around who would be working with whom in the future.
It’s official: Netflix and Microsoft are now partners
In view of Netflix’s new advertising partnership, it’s evident that the streaming platform has agreed on a mega ad deal with Microsoft. In the future, the tech company from Seattle will act as Netflix’s global partner for advertising technology and sales. It’s an exciting decision. Google was among those in the picture, but Netflix ultimately decided to work with Microsoft because, unlike Google, which has an agreement with YouTube, Microsoft doesn’t offer its own streaming service. In addition, Microsoft’s advertising team is very well connected globally, and Netflix was eager to profit from the adtech solutions provided by Microsoft subsidiary Xandr. And finally, Netflix is planning to enter the video game market to benefit from Microsoft’s extensive experience in gaming.
Disney and The Trade Desk – primed for the future of advertising
Netflix is not the only company to make a move. Other streaming companies are also planning sweeping changes to their business models and advertising economy. The recent alliance between Disney and adtech company The Trade Desk is another interesting new advertising partnership. The new collaboration is one to watch, particularly in terms of the ad-based streaming offers coming soon from the Disney+ TV network. The focus is on adtech solutions that enable advertisers to work with first-party data in as targeted a way as possible, while also complying in full with data privacy regulations. To achieve this, Disney plans to combine its proprietary and extensive user database, Audience Graph, with data privacy compliant cleanroom technology and the Unified ID 2.0 identifier framework developed by The Trade Desk.
Stop: Streaming with ad breaks – does that actually work in Germany?
Whether the ad-supported subscription models will bring a new dynamic to the streaming market remains to be seen. In Germany, at least, it’s doubtful whether the business models of Netflix, Disney, and other providers will be successful. As our latest trend survey showed, incorporating advertising within streaming services is not popular with German viewers. Therefore, it’s still not quite certain how the situation will pan out. We’re curious to see how things go and will keep you updated on the new advertising partnerships!
