Netflix reworking ad sales agreement with Microsoft: Reuters report

Netflix is restructuring its advertising partnership with Microsoft, and is cutting its ad prices reports Reuters citing a WSJ news piece.

The video streamer launched its ad-supported plan last year in 12 markets, not including India, and selected Microsoft as its technology and sales partner for the offering.

The report says Netflix chose the tech giant partly because it offered to pay a revenue guarantee, and the streamer is now reworking the agreement to reduce the revenue guarantee due to slowing growth of the ad tier, adding that company executives are frustrated that Microsoft has not sold more ad inventory.

Netflix has held early discussions to sell ads through other partners apart from Microsoft, and has also offered them better deals, the report said.

Some advertisers have agreed to pay Netflix roughly $39 to $45 per 1,000 viewers in recent deals, according to ad buyers, down from around $45 to $55, Reuters reports citing the WSJ.