Netflix and Microsoft collaborate to launch its first ad-supported subscription service

In order to increase the number of people using its streaming platform, Netflix announced it would introduce ad-supported subscription levels after losing almost 200,000 customers in the first quarter of 2022. The massive streaming company has already begun working on it, and it is collaborating with Microsoft to provide users its first ad-supported subscription service.

Netflix partners with Microsoft

All of the advertisements displayed on Netflix will only be accessible via the Microsoft platform thanks to the Netflix-Microsoft partnership. The Netflix audience and upscale connected TV inventory are now available to marketers who turn to Microsoft for their advertising requirements. Netflix’s COO and CPO, Greg Peters, has said the following about the collaboration:

Today we are pleased to announce that we have selected Microsoft as our global advertising technology and sales partner. 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. We’re excited to work with Microsoft as we bring this new service to life.

For individuals who don’t mind viewing commercials while watching movies or TV shows, many of Netflix’s rivals offer ad-supported membership plans, including Hulu and Disney. This is a tried-and-true strategy to increase platform usage.

As the two companies collaborate to create a new ad-supported option, Netflix claims that Microsoft “has the demonstrated capacity to handle all our advertising needs.” More crucially, Microsoft provided our members with solid privacy protections while allowing for future technological and commercial innovation.

The streaming service will have four membership options available after the low-cost ad-supported plan goes live; the other three are ad-free Basic, Standard, and Premium. The cost of the ad-supported offering has not been disclosed by the corporation. However, it is anticipated to be considerably less expensive than the Basic plan’s price.

Christopher Woodill

About ME

Enterprise technology leader for the past 15+ years…certified PMP, Six Sigma Black Belt and TOGAF Enterprise Architect. I collaborate with companies to help align their strategic objectives with concrete implementable technology strategies. I am Vice President, Enterprise Solutions for Klick Health.

Leave a Comment