Netflix Inc (NASDAQ: NFLX) is on a hunt for an ad partner and Google just popped up on its radar, as per an Ad Age report on Tuesday.
Netflix Inc says it’s speculation at this point
The streaming giant is committed to introducing a cheaper, ad-supported tier to boost revenue ever since it warned of losing up to 2 million paid subscribers this quarter. Responding to the news of being in talks with Google, however, Netflix 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. So, this is all just speculation at this point.
Also on Tuesday, Stifel analyst Scott Devitt said NFLX could climb to $240 a share. The stock is currently down more than 70% versus the start of 2022.
Netflix CEO to speak at the Cannes Lions festival
Many expect Ted Sarandos – the co-CEO of Netflix Inc to drop clues on when and how does the company plan on launching a cheaper tier when he speaks at the Cannes Lions festival this Thursday.
According to the Ad Age report, Google seems to be the “front-runner” for a potential advertising partnership with Netflix Inc. It, however, has limited experience with premium TV content. Shares of parent Alphabet Inc are up nearly 5.0% today.
Prior to the search giant, Netflix was also reported to have held similar discussions with the likes of Roku, Comcast, and NBCUniversal, some of which are more exposed to entertainment content than Google.
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