Netflix is partnering with Microsoft for its upcoming ad-supported streaming tier, the company announced on Wednesday. The streaming service says Microsoft will become a “global advertising technology and sales partner” when it launches the giveaway tier.
“It’s very early days and we have a lot more work to do,” Netflix COO Greg Peters wrote in the post. “But our long-term goal is clear. More choices for consumers and a premium, better-than-linear TV brand experience for advertisers. We are excited to be working with Microsoft as we bring this new service to life.” “
We are thrilled that Netflix has selected Microsoft as its advertising technology and sales partner. We want publishers to have more long-term viable ad monetization platforms so that more people can access the content they love, wherever they are. https://t.co/QmPszxJTOf
— satya nadella (@satyanadella) 13 July 2022
In a post on Microsoft’s blog, the company says that marketers will work with Microsoft to bring advertising to the Netflix ecosystem. “Today’s announcement also supports Microsoft’s approach to privacy, which is built on protecting customer information,” says Mikhail Parakhin, Microsoft’s president of web experiences. Outside of Netflix, Microsoft is also reportedly considering bringing ads to free-to-play Xbox games.
Netflix first hinted at a cheaper, ad-supported tier in May and later confirmed the possibility last month. Although Netflix has not announced an official date for the rollout of the tier, it is rumored that it will become available to subscribers by the end of 2022. News of Netflix’s ad-supported level came after the company disclosed a decrease in subscribers for the first time in a decade. In the previous quarter, globally topped 222 million. The company is also exploring ways to crack down on livestreaming and password-sharing to help offset the drop in customers and revenue.
Choosing Microsoft for the streaming launch recalls the close relationship between the two. The first version of Watch Instant, which mostly streamed B-movies, used Microsoft’s Silverlight technology to deliver video instead of the more common Flash player, until it was replaced by HTML5, and the Xbox 360. HD was the first console with a Netflix streaming app.