Now Streaming: Netflix expands programmatic offering for advertising

“Now Streaming” is The Fly’s weekly recap of the stories surrounding the biggest content streamers.

PLAYING THIS WEEKEND: Among the most notable new streaming content this week is season three of historical drama “The Gilded Age,” featuring Carrie Coon and Cynthia Nixon, which premieres Sunday and will be available to watch on HBO Max (WBD). Also out this week on Apple TV+ (AAPL) is season two of “The Buccaneers”, an 1870s-set period drama starring Kristine Froseth and Christina Hendricks. Additionally, viewers can check out “We Were Liars”, the adaptation of a young adult mystery novel, on Amazon (AMZN) Prime Video or “The Waterfront”, a family drama inspired by true events, on Netflix (NFLX).

NETFLIX EXPANDS PROGRAMMATIC OFFERING FOR ADVERTISING: On Monday, Netflix announced that it is (APO). Netflix said, “This will enable clients to buy Netflix advertising through Yahoo programmatically, and will be available later this year in all 12 of our ad-supported countries. Integrating Yahoo DSP is all about driving performance for Netflix advertisers, and we will partner together on advanced targeting segments to optimize the best results for our clients. This is another milestone for the ads business, giving our global clients even more optionality in their buying. Our focus has always been to offer the best advertising experience to our clients and members, and we’re excited to continue to give advertisers the ability to reach the most engaged and attentive ad-supported viewers.”

On Friday, Pivotal Research raised the firm’s price target on Netflix to a Street-high $1,600 from $1,350 and kept a Buy rating on the shares. The firm moved from a year-end 2025 to year-end 2026 target price and increased its terminal EBITDA multiple citing increasing confidence in the company’s “dominant market positioning.” Netflix remains underpenetrated globally, offers an “extremely compelling” price to entertainment value, boosted by its advertising supported offering, that should allow the company to continue to generate solid subscriber growth and average revenue per user growth, the analyst said. Pivotal continues to view management’s “aspirational” goal of a $1T valuation by 2030 as reasonable.

Meanwhile, Wells Fargo raised the firm’s price target on Netflix to $1,500 from $1,222 given its opportunity path, while keeping an Overweight rating on the shares. The firm said high-value short-form content could be Netflix’s next big move with exclusive creator deals. Wells estimates incremental engagement at an attractive ROI. It’s a third pillar of growth after sports and ads.

Additionally, Craig-Hallum noted that Netflix announced its first entry into live broadcast channels with the announced partnership with TF1, the leading live TV broadcaster in France. The partnership will see subscribers in France gain access to live and on-demand content directly on Netflix. Notably, Magnite (MGNI) struck an agreement with TF1 just nine months ago to bolster programmatic demand. Thus, the firm sees this relationship representing a ramp in its monetization potential with Netflix by bringing an influx of live content to the Netflix ecosystem, where Magnite remains the exclusive SSP. Craig-Hallum expects a seamless transition to monetizing this inventory on Netflix at up to 90% programmatic execution. The firm’s checks from Cannes in France have noted a material ramp in interest and active discussions between these broadcasters and both publishers like Netflix, and tech partners like Magnite.

AMAZON ADS, ROKU ANNOUNCE NEW INTEGRATION: Amazon Ads and Roku (ROKU) announced Monday a new integration that gives advertisers access to the largest authenticated CTV footprint in the U.S. exclusively through Amazon DSP. The new collaboration delivers logged-in reach to an estimated 80M U.S. Connected TV households, representing more than 80% of U.S. CTV households according to ComScore data. The exclusive partnership enhances addressability across major streaming apps; popular streaming services already available and all premium publishers. Early tests of this integration have shown significant results. Advertisers using this new solution reached 40% more unique viewers with the same budget and reduced how often the same person saw an ad by nearly 30%, enabling advertisers to benefit from three times more value from their ad spend.

Following the news, Loop Capital upgraded Roku to Buy from Hold with a price target of $100, up from $80. The firm cites expectations that the Amazon advertising partnership should begin positively impacting Roku’s financial results starting next year for the upgrade. This development will further strengthen Roku’s position as the leading TV operating system in the U.S., the analyst said. Loop added the partnership will integrate Roku and Amazon’s logged-in connected TV user bases, representing an estimated 80M households, through the Amazon demand-side platform. Roku contributes its “industry-leading” user base while Amazon “brings its unmatched shopping feedback loop,” the firm contended.

Meanwhile, Citizens JMP said the deal can ultimately improve the monetization of Roku inventory. The firm, which reiterated an Outperform rating and $95 price target on Roku shares, is increasingly confident in the sustainability of mid-teens platform revenue growth going forward.

Additionally, BofA raised the firm’s price target on Roku to $100 from $85 and kept a Buy rating on the shares. Advertisers will have access to the largest authenticated CTV footprint in the U.S. exclusively through Amazon’s demand side platform, noted the analyst, who says the expansion is intended to improve performance, planning and measurement for all advertisers. A key tenet of the firm’s bullish thesis on Roku is predicated on monetizing their existing inventory through their integrations with DSPs, saif the analyst, who views this announcement as “another proof point that Roku intends to be more flexible and drive further interoperability within their platform.”

Citi also raised the firm’s price target on Roku to $84 from $68 and kept a Neutral rating on the shares. The firm believes the move enhances Roku’s competitive positioning in the connected TV space and gives “incremental confidence” in the company’s growth trajectory. Citi raised estimates to reflect the new partnership, but believes the benefits of the partnership are largely priced into Roku shares at prevailing levels.

AMAZON ADS, DISNEY ADVERTISING ENTER COLLABORATION: Amazon Ads and Disney Advertising (DIS) announced Tuesday they have launched an integration between Disney’s Real-Time Ad Exchange and Amazon DSP. “This collaboration allows advertisers to gain direct access to Disney’s premium inventory across platforms, like Disney+, ESPN, and Hulu, while allowing them to leverage insights from both companies to reach relevant audiences more efficiently,” Amazon said. “This added transparency, control, and efficiency provides greater visibility into how inventory is packaged, streamlining ad delivery and improving performance. It also unlocks more precise audience engagement and curated deal packages through Disney’s unique solutions, such as Disney’s Magic Words contextual targeting and the upcoming connection to Disney Select, Disney’s proprietary data offering.” The new integration will be available to all U.S. advertisers that use Amazon DSP beginning in Q3.

STOCK PLAYS: Other publicly traded companies in the space include Comcast (CMCSA), Paramount (PARA), AMC Networks (AMCX), Fubo (FUBO), and Fox Corporation (FOX).