Netflix revises deal with Microsoft (MSFT.US) to lower ad prices to boost growth

More than a year after Netflix signed its original ad deal with Microsoft, Netflix reportedly revamped its ad deal to boost growth. Netflix has also held preliminary discussions about selling ads from other companies, the report said. The report added that Netflix has lowered its fees for advertisers, from $45-$55 to $39-$45 for about 1,000 views in a recent deal.
Some Netflix executives expressed displeasure at Microsoft for not selling more ad inventory, people familiar with the matter said.
Executives at the streaming giant have publicly said that average revenue per member for an ad subscription service is at least as high as a standard ad-free subscription service.
Netflix this month reported lower-than-expected second-quarter results and guidance, sending the company's stock sharply lower.
Netflix co-CEO Greg Peters said on a recent earnings call that the pay-to-share program is key to revenue growth this year. The program means users who share accounts with people other than family members will incur additional fees.
In March, it was reported that Netflix was considering alternatives to using advertising technology provided by Microsoft to support its ad subscription service, including doing business alone.
YouTube ads vs. Netflix revenue.