18 August 2022
Netflix has announced Microsoft as its global advertising technology and sales partner for the cheaper ad-supported subscription plan. The confirmation through press releases shared by both the tech giants. It essentially means that Microsoft will be the exclusive partner for serving ads on Netflix whenever the subscription plan rolls out.
The goal is to deliver ads to subscribers in a way that they do not ruin the streaming experience. It should be noted that the ad-supported tier will be a separate thing from the existing Basic, Standard, and Premium plans. These plans continue to be free from ads and nothing will change for their respective subscribers. Netflix is working on an ad-supported plan for users who are okay with watching ads as long as they get to pay relatively low.
Netflix says it opted for Microsoft because it has shown a proven ability to support all of its advertising needs. It further says that the company has offered "flexibility to innovate over time on both the technology and sales side, as well as strong privacy protections for our members".
We still do not have any substantial information related to Netflix's ad-supported subscription plan. It is unknown how the ads would work on the streaming platform or how much it would cost. But as Microsoft has been assigned as the ad provider, we should be hearing about other aspects of the plan soon enough.
Mikhail Parakhin, President of Web Experiences at Microsoft said:
"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. 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."