Global Streamer Netflix and Microsoft have announced a plan to partner to launch the streaming giant’s first ad-supported subscription.
In a statement that was made by Netflix’s Chief Operating Officer Greg Peters, who said that “Microsoft has the proven ability to support all our advertising needs as we work together to build a new ad-supported offering. 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.”
The development comes months after Netflix announced a new ad-supported offering amid the company’s shrinking subscriber base.
Both companies shared the latest news in separate blogs, though it is still unclear when the new ad-supported model will roll out. Details of the subscription are also yet to be revealed.
The computer giant Microsoft says that they are “thrilled” to be named Netflix’s technology and sales partner. Marketers looking to Microsoft for their advertising needs will have the advantage of access to the Netflix audience and connected TV inventory. All ads served on Netflix will be exclusively available through the Microsoft platform.
Speaking more about the partnership, Netflix COO Peters said “It’s 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.”.
In April, the internet service announced that it had lost about 200,000 subscriptions, a first for the company in a decade which later led to a slump in Netflix shares. The loss has been attributed to the war between Russia and Ukraine, the global rising cost of living, and competition from the likes of Amazon Prime, HBO Max, Apple TV, and Disney+.