With the release of its ad-supported subscription program looming, Netflix has announced Microsoft Corp as its sales and tech partner in an attempt to slow the current loss of subscribers on the platform.
Netflix announced in April its intent to introduce an ad-supported subscription plan as a lower-cost option to offer alongside existing basic, standard and premium plans.
Chief operating officer and chief product officer at Netflix, Greg Peters said: “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.
“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.”
Mikhail Parakhin, president web experiences, Microsoft said: “We’re thrilled to be named Netflix’s technology and sales partner to help power their first ad-supported subscription offering.
“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.”
Netflix will join a number of streaming platforms already offering ad-supported plans, including Hulu, Peacock and HBO Max. Disney has also announced plans to offer an ad-supported subscription on its Disney+ platform.
