Netflix and Facebook’s Decade-Long Data Exchange and $100 Million Deal
A document revealed by user Deedy has brought to light a significant exchange of private user information between Netflix and Facebook.
The document uncovers that Facebook granted Netflix access to users’ private messages in return for insights into their viewing habits. Additionally, Netflix reportedly paid Facebook over $100 million as part of this exchange.
In 2011, Netflix introduced a feature for sharing user data with Facebook on an international scale and even lobbied the U.S. Congress to permit such data exchanges domestically. By 2013, Netflix had entered into agreements with Facebook, including an “Inbox API” deal, which allowed Netflix to access users’ private Facebook messages. In return, Netflix agreed to provide Facebook with bi-weekly reports detailing user engagement with recommendations.
The document also mentions that in August 2013, Facebook granted Netflix access to its “Titan API,” which allowed Netflix, as a whitelisted partner, to access information on Facebook users’ messaging app friends and non-app friends.
This collaboration between Netflix and Facebook spanned nearly a decade, greatly influenced by Reed Hastings, Netflix’s CEO at the time, who served on Facebook’s board from 2011 to 2019 and played a key role in fostering the partnership.
The relationship also saw Netflix significantly increase its advertising expenditure on Facebook, with annual ad spending reaching approximately $150 million by early 2019.
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