Netflix and Microsoft have recently made significant changes to their advertising partnership.

According to sources familiar with the matter, Netflix has decided to restructure its advertising collaboration with Microsoft, which includes a reduction in ad prices.

The streaming giant has engaged in preliminary discussions with other potential partners for selling ads, in addition to its existing partnership with Microsoft, Wall Street Journal reported on Thursday.

Last year, Netflix chose Microsoft as its technology provider and ad seller, primarily due to Microsoft’s attractive offer of a “revenue guarantee.” This guarantee ensured that Netflix would receive a substantial amount of revenue from the collaboration.

However, the terms of the agreement are currently undergoing modifications. Netflix is actively working to lower the revenue guarantee previously established with Microsoft.

Although the exact details of the revised terms have not been disclosed yet, negotiations are underway to finalize the adjustments.

These developments highlight Netflix’s efforts to optimize its advertising strategy and form new partnerships, demonstrating the company’s commitment to adapt and grow in the highly competitive streaming industry.