Streaming giant Netflix announced on Wednesday that it has teamed up with Microsoft for its new ad-supported subscription model.
The company first said in April that it was exploring ways to offer an ad-supported and cheaper subscription plan to attract more users, after losing 200,000 subscribers in the first quarter of 2022.
As we reported earlier last month, Netflix was reportedly in talks with Google and Comcast’s NBCUniversal to make its plans come alive. However, it turns out the talks didn’t come to a conclusion and the company eventually announced that it has chosen Microsoft as its global advertising partner.
”Microsoft has the proven ability to support all our advertising needs as we work together to build a new ad-supported offering,” said Greg Peters, the Chief Operating Officer and Chief Product Officer of Netflix. ”More importantly, Microsoft offered the flexibility to innovate over time on both the technology and sales side, as well as strong privacy protections for our members.”
Peters added that the project is still in its early stages, so there is no exact date yet for the launch of the new subscription model.
”At launch, consumers will have more options to access Netflix’s award-winning content. Marketers looking to Microsoft for their advertising needs will have access to the Netflix audience and premium connected TV inventory,” said Mikhail Parakhin, President Web Experiences at Microsoft. ”All ads served on Netflix will be exclusively available through the Microsoft platform. Today’s announcement also endorses Microsoft’s approach to privacy, which is built on protecting customers’ information.”