Observed Signal · Feb 3, 2026 · Policy Update · Source: AdExchanger · Impact: 4/5 · Sentiment: Negative
Microsoft's Caching Cut Sparks Crisis for Video Publishers
Microsoft Advertising will stop providing free caching for Prebid video ad files on April 30, a change that follows the planned shutdown of the Xandr DSP and converts Prebid video caching into a paid ad‑tech feature. Publishers that use Prebid with Google Ad Manager (GAM) rely on an intermediary cache to host video creatives during the brief moment GAM runs its final auction; without Microsoft’s cache many Prebid-to-GAM video impressions could produce VAST errors and fail to play. Microsoft delayed the deadline from January 31 to April 30 and said Prebid.js now supports local caching. Alternatives include paid caching from SSPs and exchanges (e.g., Magnite, PubMatic, Mediavine, JW Player) or Prebid’s Local Cache (a BLOB/local approach) under development by Raptive and early testers. Industry estimates suggest Microsoft’s cache handled a majority of Prebid-to-GAM video traffic, and caching costs and integration work will be material for publishers.
Major platform (Microsoft Advertising) ending a widely used free caching service that reportedly covered >60% of Prebid-to-GAM video impressions will cause time-sensitive ad serving failures, require publisher engineering changes, potential revenue losses, and increases in vendor hosting costs.
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Key Takeaways & Evidence Grounding
- Microsoft Advertising will no longer pay to cache Prebid video ad files after April 30; caching will become a paid offering.
- Microsoft acquired Xandr (formerly AppNexus) in 2021; AppNexus/Xandr historically provided this caching service.
- The Microsoft Advertising cache reportedly accounted for more than 60% of Prebid-to-GAM video ad impressions, per The Trade Desk engineer Ian Meyers.
- Prebid is developing a Prebid Local Cache (using a BLOB/local caching approach) led by Raptive with early testers including Freestar and CrazyGames.
- Several SSPs and video networks (Magnite, PubMatic, Mediavine, JW Player) already offer Prebid video caching as a paid option; publishers must update Prebid/GAM setups to point to new caches.
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Prebid's Growing Power: Shaping Ad Tech's Future
Prebid's influence in the open-source ad-tech ecosystem is expanding. The episode notes three developments: Amazon is building an adapter for the Prebid wrapper, reducing publisher complexity and signaling broader buy-side support. It also references a potential antitrust remedy that would have Google integrate with Prebid, illustrating how major platforms may interact with the open-source framework. The discussion covers Microsoft’s decision not to cache video files for Prebid auctions, a move tied to substantial data-center costs after the curation of its Ad Tech assets, including AppNexus technology and the shutdown of Microsoft Invest. Finally, Prebid is taking ownership of a standard sell-side AI agent for ad tech under the AdCP initiative, with the seller agent code open source and managed by Prebid. Taken together, the stories emphasize Prebid's rising influence in the industry and its push into broader code governance.
Shinka Unveils Prebid Cache to Replace Microsoft’s Service
Shinka, an independent ad tech infrastructure provider for connected TV (CTV) and digital out-of-home (DOOH) publishers, announced the launch of Shinka Prebid Cache, an enterprise-grade caching platform designed to replace Microsoft-hosted Prebid Cache, which is being deprecated in H1 2026 with a hard deadline of April 30, 2026. The move addresses a critical infrastructure gap as thousands of publishers rely on the Microsoft-hosted cache for video header bidding, with the current cache reportedly accounting for over 60% of configured endpoints for video creatives. Shinka Prebid Cache is built to process billions of ad requests monthly, offers low-latency global endpoints, real-time analytics, and migration support. The service has achieved SOC 2 Type 1 compliance. An early access program is open with a January 31, 2026 deadline, including priority onboarding and dedicated technical support. CEO Kieran Greene emphasizes providing a reliable alternative to ensure smooth migrations across the ecosystem.
Microsoft Xbox creates new division for films, series, parks
Microsoft's Xbox gaming division announced the creation of a new business unit dedicated to films, television series, and theme park attractions. The move signals an expansion into entertainment and immersive experiences beyond video games, leveraging Xbox's intellectual property. This strategic diversification is part of Microsoft's broader ambition to grow its media and entertainment footprint, following trends seen across the industry. The new division will focus on developing and producing content based on Xbox franchises, potentially opening new revenue streams for the company. Financial details or a timeline for the division's operations have not been disclosed.
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