Netflix is partnering with Microsoft for new ad-supported tier. According to a statement released by Netflix on Wednesday, Microsoft will be a part of its forthcoming ad-supported streaming service. After launching the less expensive alternative, the streaming service claims that Microsoft will become its “global advertising technology and sales partner.”
“It’s very early days and we have much to work through”, says Netflix COO Greg Peters in the post. “But our long-term goal is clear. More choice for consumers and a premium, better-than-linear TV brand experience for advertisers. We’re excited to work with Microsoft as we bring this new service to life.”
Netflix is partnering with Microsoft for new ad-supported tier
The firm claims that marketers would collaborate with Microsoft to introduce advertisements to the Netflix ecosystem in a blog post on its website. According to Mikhail Parakhin, Microsoft’s head of web experiences, “Today’s announcement also supports Microsoft’s approach to privacy, which is built on protecting customers’ information.” Microsoft is apparently considering adding advertisements to free-to-play Xbox games in addition to Netflix.
A cheaper, ad-supported tier was first suggested by Netflix in May, and it was later confirmed last month. Although Netflix hasn’t provided an official launch date, the tier is expected to be made available to users by the end of 2022. After the business disclosed a decline in members for the first time in a decade last quarter, peaking at 222 million globally, word of Netflix’s ad-supported tier spread. To help counteract a decline in subscribers and revenue, the company is also looking into livestreaming and ways to crack down on password-sharing.
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Choosing Microsoft remembers the two of them working closely together on streaming product launches. The Xbox 360 was the first console to include an HD Netflix streaming software, and the original version of Watch Instantly, which streamed largely B-movies, used Microsoft’s Silverlight technology to serve video rather than the more popular Flash Player until it was replaced by HTML5.
