Netflix and Amazon Ads announce new partnership to boost advertising opportunities

Netflix and Amazon Ads announce new partnership to boost advertising opportunities

In a significant move to enhance advertising opportunities for marketers, Netflix and Amazon Ads have announced a strategic partnership. This collaboration will allow advertisers to buy programmatic advertising inventory from Netflix via Amazon's demand-side platform (DSP), a move that could reshape the streaming advertising landscape.

Paul Kotas, senior vice president of Amazon Ads, stated, "Our goal is to remove the guesswork for advertisers by making it simple to manage all of their TV planning and buying with Amazon Ads." This partnership, set to launch in the fourth quarter of 2025, will be available in the United States, United Kingdom, France, Spain, Mexico, Canada, Japan, Brazil, Italy, Germany, and Australia .

Amy Reinhard, president of advertising at Netflix, expressed her enthusiasm about the integration, noting, "By integrating Amazon DSP and enabling even more advanced capabilities together over time, we’re making it easier than ever to connect with Netflix’s global engaged audience." This move follows Netflix's previous partnerships with The Trade Desk, Google, and Microsoft, further expanding the reach of its ad inventory .

The partnership is particularly timely as the streaming market experiences a glut of broadband-TV inventory due to the entry of major players like Amazon and Netflix into ad-supported streaming. Programmatic advertising, which uses algorithms to define consumer qualities, aims to improve the effectiveness of commercials by distributing them more precisely, potentially reducing the number of commercials shown to the same consumer .

This collaboration underscores Netflix's commitment to diversifying its revenue streams. In 2024, Netflix doubled its ad revenues and aims to repeat this performance in 2025, driven by the rapid adoption of its ad-supported tier. The company's ad strategy relies on expanding ad-tier penetration, deploying advanced ad-tech, and leveraging premium content to attract advertisers .

Amazon, with its Prime Video, has also been making significant strides in ad-supported streaming. Its ad-supported tier, which now has over 115 million viewers, contributed to a 23% year-over-year increase in ad revenues in the second quarter of 2025. Amazon's engagement is bolstered by shoppable ads, AI-driven targeting, and exclusive sports content .

The partnership between Netflix and Amazon Ads is expected to make nearly every streaming service and platform available to advertisers using Amazon's DSP. This move not only enhances the visibility and reach of advertising opportunities but also positions these platforms as formidable players in the competitive streaming market.

As Netflix and Amazon continue to innovate and expand their advertising offerings, investors and financial professionals should keep an eye on how these strategic partnerships impact the broader streaming ecosystem and the companies' financial performance.