Streaming service giant Netflix has announced an official partnership with Microsoft as the company is about to launch its ad-supported subscription model on the site.
In a press statement on both the Netflix and Microsoft website, Netflix will partner up with Microsoft’s sales team to provide “high quality” ads onto its platform. Microsoft also announced that potential marketters will have access to both the company’s and Netflix’s audience and ensured that both parties will continue to uphold’s Microsoft’s approach to privacy.
Netflix COO Greg Peters shared a few words on the Microsoft website, saying that he’s thrilled to provide more choice to the consumers and are excited to bring the new service to life.
“Today we are pleased to announce that we have selected Microsoft as our global advertising technology and sales partner…
…Itâs very early days and we have much to work through. But our long-term goal is clear: More choice for consumers and a premium, better-than-linear TV brand experience for advertisers. Weâre excited to work with Microsoft as we bring this new service to life.â
It was reported early this year that Netflix has lost 200,000 of its subscribers during the first quarter of 2022. The company has lost over $54 billion in stock value, marking the company as the worst performer at the stock market this year. Due to the financial loss, Netflix began to crack down on password sharing and has increased the cost of their subscription plans.
The new ad-supported model will give subscribers a cheaper alternative to access Netflix content, while having ads play during their streaming activity. The ad-supported model will not replace the existing ad-free subscription plans.
