The Walt Disney Co. DIS and Netflix NFLX have announced new strategies to solidify the advertising on their respective streaming services.
The View From Disney: Axios reported Disney is partnering with The Trade Desk, a global advertising technology company, on a set-up to enable the targeting of automated brand ads based on back-end data.
The partnership will incorporate two technologies – Disney’s proprietary Clean Room that uses first-party data gained through user consent and the industry standard Unified ID 2.0 framework favored by The Trade Desk. Through this set-up, Disney can sell more advertising at scale.
The targeted automated ads will be used on Disney’s current advertising-supported streaming services and would be incorporated into Disney+, where the company is planning to introduce an advertising-supported tier.
“Disney Advertising had a bold vision backed by proven results from the start, and we’re thrilled to continue to deliver on our commitment to power greater automation and addressability for our customers through this expanded deal with The Trade Desk,” said Rita Ferro, president of advertising sales for Disney Media & Entertainment Distribution.
The View From Netflix: Wall Street Journal, citing unnamed “people familiar with the matter,” reported Netflix is working to update its licensing contracts with several Hollywood studios to put their content on a proposed advertising-supported version of the streaming service.
The company is in negotiations with Warner Bros. WBD, producer of the series “You,” Comcast Corp.’s CMCSA Universal, producer of “Russian Doll,” and Sony SONY Pictures Television, producer of “The Crown” and “Cobra Kai.” Netflix will also need to renegotiate contracts for the older shows on its service, including Sony’s “Breaking Bad” and Paramount Global’s PARA “NCIS.”
The Journal also reported that Netflix is planning to begin the ad-supported version of its service by the fourth quarter of this year and is in talks with Alphabet Inc.’s GOOG and Comcast’s NBCUniversal to provide technology and/or sales help for the launch.
A Netflix spokeswoman said, “We are still in the early days of deciding how to launch a lower-priced, ad-supported option, and no decisions have been made.”
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