NBCUniversal and Google are competing for Netflix to offer an ad-based totally alternative

Google and NBCUniversal of Comcast Corp. they are competing to help Netflix build a level of ad-supported streaming service.

The number of subscribers is falling. April Netflix announced that it lost about 200,000 subscribers, which is the first time that the streaming platform has lost any subscribers in more than 10 years. Netflix reports that its user base is growing. One of the reasons for this may be sharing a password due to the increase in monthly costs. Either way, Netflix hopes to increase its revenue by selling ads.

What this means for NBCUniversal. A partnership with NBCUniversal would probably be exclusive. An ad unit called FreeWheel would provide the necessary technology to display ads. The NBCUniversal sales team would help sell ads across Europe and the US.

Google Partnership Google is bringing its own advertising platform, whose client is currently Netflix. The agreement with Google could have been an exclusive agreement, but has not been confirmed.

Change of strategy. Netflix has been providing users with an ad-free streaming experience for over 10 years. But because of competition from competing streaming services, they are reconsidering their approach. The inclusion of Google or NBCUniversal could help Netflix reach an ad-supported level much faster, although experts say it could be another year or more before it becomes a reality.

Experience supporting other companies. Both competitors are currently working with other major brands. A possible deal with Netflix could mean sharing access to its technology partners and audiences. NBCUniversal has been the exclusive ad reseller for Apple News and Apple Stocks since 2017, and has recently expanded to the UK. Google is working with Walt Disney Co. (former FreeWheel customer) to show their ads from 2018.

What Netflix says. Netflix has not provided any details about its plans, how many ads will be displayed, ad targeting or reach.

Read the notice. You can read the article from the Wall Street Journal here.

Why we care. The Netflix rate, backed by ads, would give advertisers another channel to promote their business that could be profitable and cheaper than traditional TV commercials. However, partnering with Google is likely to mean more data sharing and targeted advertising, which could be a deterrent to many users.