The Netflix ad business is still a work in progress, but the company sees it as one day being a powerful driver of revenue. For that to happen, ad agencies will need as much access to Netflix ads as possible, as well as data about what consumers are responding to at any given time. That’s where Amazon’s demand-side ad platform comes in; Amazon connects advertisers to platforms with available ad space on its DSP, and has announced a partnership with Netflix to connect the streamer to ad firms.

As reported by Variety, Amazon and Netflix have teamed up in a deal that will allow the Amazon demand-side ad platform to sell Netflix’s programmatic ad inventory. Essentially, this means advertisers will now be able to buy ad space on Netflix through Amazon’s digital platform.

What will this mean for subscribers? It could lead to better, more relevant ads for viewers who subscribe to the Netflix Standard with Ads platform in the future. Amazon’s DSP includes strong audience data and statistics about consumers, which advertisers can use to their advantage in crafting more customized campaigns to be shown on Netflix.

Such deals are increasing in frequency and show how important big streaming companies think advertising revenue will be in the future. Amazon struck a similar ad deal with Disney earlier this summer, and Netflix made an ad sales partnership with Yahoo in June. These companies are clearly trying to find ways of delivering more effective ads with their streaming products, as a way to guarantee ads are an effective revenue stream as opportunities for increased subscription revenue plateau.

There simply aren’t that many consumers out there who want streaming subscriptions but don’t have them yet, so streamers can’t really count on big influxes of new customers every quarter anymore. Price increases will only take them so far, and ads provide a reliable source of money for streaming services that is critical to their longevity.

The deal, sadly, does not indicate that Netflix is becoming available in the Prime Video Subscriptions store, and I doubt any such announcement is forthcoming. But the two entertainment giants have agreed to collaborate in one area at least: Amazon is now selling Netflix ad inventory in its DSP platform.

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Netflix is a leading subscription-based video streaming service that offers on-demand access to an extensive library of over 3,000 movies, 2,000+ TV shows, and a growing collection of acclaimed Netflix originals. Renowned for producing groundbreaking content, Netflix has become a cultural powerhouse with hit originals like “Stranger Things,” “Wednesday,” “Squid Game,” “The Crown,” “Tiger King,” “Bridgerton,” “The Witcher,” and “Black Mirror.”

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The platform constantly updates its catalog, introducing fresh content alongside timeless classics and international hits. Netflix’s commitment to storytelling has also earned critical acclaim, with award-winning exclusives such as “Roma,” “Marriage Story,” “The Power of the Dog,” “Mank,” and “Ma Rainey’s Black Bottom.” In 2023, their animated film “Guillermo del Toro’s Pinocchio” won an Academy Award for Best Animated Feature, further solidifying Netflix’s reputation for high-quality content.

Recently, Netflix has expanded beyond standard movies and TV titles with the addition of video podcasts, and is also exploring a digital store that would offer third-party streamers within the app.

Netflix offers three plans – stream on 2 devices in HD with the “Standard with Ads” ($8.99) plan, on 2 devices in HD with the “Standard” ($19.99) plan, and 4 devices in up to 4K on the “Premium” ($26.99) plan.

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