Netflix teams up with Microsoft for its new ad-supported tier
Microsoft’s ad platform will be responsible for all of Netflix’s new ads.
Netflix is planning on launching an ad-supported tier for its streaming service for the first time and it has penned a deal with Microsoft to be its ad partner. Microsoft will be responsible for working with advertisers to bring ads to the platform.
Netflix revealed the partnership in a blog post on its website earlier this week. “Microsoft has the ability to support all our advertising needs as we work together to build a new ad-supported offering,” reads the company’s statement.
Microsoft President of web experiences, Mikhail Parakhin, also released a blog post celebrating the new partnership. The post confirmed that all of the ads on Netflix’s ad-supported tier will come directly through Microsoft’s ad platform.
“We’re thrilled Netflix has selected Microsoft as its advertising technology and sales partner. We want publishers to have more long-term viable ad monetization platforms, so more people can access the content they love wherever they are.” – Microsoft’s statement.
Netflix has been teasing its new ad-supported plan since back in April and confirmed its plans just a few weeks ago. We don’t know exactly when the company could launch the new tier. But it could be as early as this fall.
With Netflix working on adding advertisements to its platform, the Microsoft partnership makes sense.
The two companies have a history of working together dating back to 2008 when the two companies worked together to bring Netflix streaming to the Xbox 360 console.
It will be interesting to see how popular the new ad-supported tier is. Netflix hopes it can help the platform slow its decline in users and revenue, but I’m not so sure.
People have become used to ad-free watching on Netflix. And I’m not sure the cheaper price will make up the difference. But for now, we’ll just have to wait and see.
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