A year after announcing that it had chosen Microsoft as its ad-tech partner for its introduction of an ad-supported subscription tier, Netflix is preparing to build its own server in order to enable new ad formats.
To better compete with Disney+, Max, Peacock and others with ad-supported options, Netflix has been talking to ad buyers about experimenting with “episodic” campaigns that would allow them to create mini-series-type ads featuring multiple, sequential spots -- rather than showing the same ad repeatedly, according to a Financial Times report.
That would require direct relationships with consumers and advertisers that would require an in-house solution, the sources said.
Netflix’s contract with Microsoft is reportedly for two years. The sources said the shift could occur as soon as 2024.