Earlier this year, Netflix disclosed plans to introduce an ad-supported version of its streaming platform.
According to BMA sources, NBCUniversal and Google are looking to join Netflix’s ad-tier venture. However, the streaming giant is still in the early stages of developing an ad-selling strategy for the platform.
Netflix is considering a partnership as a means to achieve that goal.
BMA sources reveal that if Netflix were to partner with NBCU, the streaming giant could tap into FreeWheel, Comcast’s video ad unit, to help serve ads.
Launched earlier this week, Freewheel assists services in connecting first and third-party data to different IDs.
NBCU revealed that YouTube already runs FreeWheel’s ad integration features on its platform.
It also disclosed that they have been testing various ad formats, including frame ads for its AVOD service Peacock as well as an augmented reality experience.
One issue with an NBCU-Netflix partnership may be determining how much revenue Netflix would get from the deal. Sources reveal that an agreement between the two entities would likely be exclusive.
On the other hand, Google already has commercial ties with the streaming service. Netflix is a major customer of Google’s ad-buying technology, and it’s likely Google would also seek an exclusive arrangement.
However, Netflix is still uncertain on how to launch a lower-priced ad tier, so it has yet to make a decision on the matter.
According to BMA sources, Roku is also considered a potential ad partner.
Earlier this month, the smart TV platform gained media attention after speculations floated around about Netflix possibly acquiring the company.
BMA sources revealed that Netflix is looking to secure a marketing partner in the next three months and hire a senior executive to manage relationships with any potential partner.