Amazon and Netflix Forge Advertising Partnership, Impacting Ad Tech Sector

Amazon and Netflix have unveiled a strategic advertising alliance, enabling marketers to purchase ad inventory on Netflix through Amazon's demand-side platform. The collaboration, launching in Q4 2025 across 11 major markets, signals both companies' aggressive push into digital advertising.

The deal further cements Amazon's position as an advertising infrastructure powerhouse, leveraging its 300 million monthly Prime Video viewers. Meanwhile, Netflix gains access to Amazon's sophisticated ad tech stack as it scales its fledgling ad-supported tier.

Market reaction was immediate, with The Trade Desk shares dropping 7.5% on the news. Amazon and Netflix stocks saw modest declines of 3% and 1% respectively, likely reflecting near-term implementation costs rather than long-term strategic concerns.