Netflix is partnering with Microsoft for its upcoming ad-supported streaming tier, the company announced Wednesday. The streaming service says Microsoft will become its “global ad technology and sales partner” at the launch of the cheaper option.
“It’s very early and we have a lot of work to do,” Netflix COO Greg Peters wrote in the post. “But our long-term goal is clear. More choice for consumers and a premium, better than linear TV experience for advertisers. We are excited to work with Microsoft as we bring this new service to life.”
We are thrilled that Netflix has chosen Microsoft as its ad technology and commercial partner. We want publishers to have more long-term viable ad monetization platforms so more people can access the content they love, wherever they are. https://t.co/QmPszxJTOf
— Satya Nadella (@satyanadella) July 13, 2022
In a post on Microsoft’s blog, the company says that marketers will work with Microsoft to bring ads to the Netflix ecosystem. “Today’s announcement also supports Microsoft’s approach to privacy, which is built on protecting customer information,” said Mikhail Parakhin, Microsoft’s president of web experiences. Outside of Netflix, Microsoft is also reportedly considering introducing ads to free-to-play Xbox games.
Netflix first hinted at a cheaper, ad-supported tier in May and later confirmed the possibility last month. While Netflix hasn’t announced an official release date for the tier, it’s rumored to be available to customers by the end of 2022. News of Netflix’s ad-supported tier comes after the company revealed a drop in subscribers for the first time from a decade last quarter, reaching 222 million worldwide. The company is also exploring live streaming and ways to limit password sharing to help mitigate the decline in subscribers and revenue.
Microsoft’s choice recalls the close relationship between the two for streaming startups. The first version of Watch Instantly, which mostly streamed B-movies, used Microsoft’s Silverlight technology to deliver video instead of the more common Flash Player until it was replaced by HTML5, and the Xbox 360 was the first console with an HD Netflix streaming app .
Add Comment