Netflix & Microsoft Team Up for Netflix’s Ad-Supported Tier

Netflix and Microsoft

On Wednesday, Netflix announced partnering with Microsoft for its upcoming ad-supported tier. The software giant will now be the streaming giant’s “global advertising and sales partner.”

Greg Peters, Netflix COO, mentioned in a post that the partnership is still in an early stage and that they have “much to work through.” However, Netflix’s long-term goal is to offer consumers “more choice and a premium, better-than-linear TV brand experience for advertisers.” The company says they’re “excited” to work with Microsoft.

Similarly, Microsoft CEO Satya Nadella expressed they’re “thrilled” to work with Netflix in a Twitter post. Additionally, in a blog post, the company revealed that marketers who turn to them for their “advertising needs” will have access to customers on Netflix. And, all the ads that appear on Netflix will “exclusively” be available through Microsoft. Besides that, according to the blog post, “the announcement also endorses Microsoft’s approach to privacy, which is built on protecting customers’ information.”  

Netflix and Microsoft

Why did Netflix select Microsoft for its ad-supported subscription plan?

The Wall Street Journal reported that Netflix chose Microsoft for its new consumer subscription plan for two important reasons. Firstly, unlike Comcast and Google, Microsoft doesn’t have a video service of its own that can rival Netflix. And secondly, in 2021, Microsoft acquired Xandr, an ad tech company that aims to build technology for a “post-cookie world,” from AT&T. 

Netflix’s ad-supported tier

The streaming giant first introduced a cheaper, ad-supported subscription in April. However, the company hasn’t yet announced an official date for its release. But, speculations are that it may roll out to customers by the end of this year. 

Netflix and Microsoft

Moreover, Netflix announced the ad-supported tier on the heels of the company’s reduced subscriber count for the first time in ten years. Besides a cheaper subscription tier, Netflix plans to live stream to increase subscribers and revenue. In addition, the company is even figuring out ways to prevent password-sharing on the platform. 

What’s more

Interestingly, this isn’t the first time Netflix and Microsoft displayed a “close relationship.” For instance, Watch Instantly’s first version streamed videos using Microsoft’s Silverlight technology. Also, the first console with an HD Netflix streaming app was Xbox 360. 

Saloni Behl

By salonibehl

I always had a crush on technology that's why I love reviewing the latest tech for the readers.

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