Netflix partners with Microsoft to bring its first ad-supported subscription offering

After losing around 200,000 subscribers in the first quarter of 2022, Netflix said it would bring ad-supported subscription plans to attract more users to its streaming platform. The streaming giant has already started working on it, and it is partnering with Microsoft to bring its first ad-supported subscription offering to the users.

The Netflix-Microsoft partnership means all ads served on Netflix will be exclusively available through the Microsoft platform. Marketers looking to Microsoft for their advertising needs will now have access to the Netflix audience and premium connected TV inventory. About the partnership, Greg Peters, COO and CPO of Netflix, has said:

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.

Many of the Netflix competitors, such as Hulu and Disney, have ad-supported subscription plans for those who don’t mind seeing advertisements while watching movies or TV shows. So, this is a tried and tested method to get more people into the platform.

Netflix says, “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.”

Once the low-cost ad-supported subscription plan launches, the streaming platform will have four subscription offerings; the other three include ad-free Basic, Standard, and Premium. The company hasn’t disclosed anything on the pricing of the ad-supported offering. But it’s expected to be significantly lower than what the Basic plan costs.