Netflix has announced a partnership with Microsoft to launch the streaming giant's first ad-supported subscription plan. Both companies announced the decision on their blogs, but there is no clarity on the details of the subscription.
Netflix COO Greg Peters said: “In April we announced that we will introduce a new lower priced ad-supported subscription plan for consumers, in addition to our existing ads-free basic, standard, and premium plans. Today we are pleased to announce that we have selected Microsoft as our global advertising technology and sales partner.”
He added: “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.”
In June, there were reports Netflix is in talks with companies for advertising partnerships. According to a report by The Wall Street Journal, Sarandos said the company wanted to design an ad experience that would be “more integrated and less interruptive” than traditional TV advertising. After losing subscribers for the first time in a decade and, Netflix said in April that it was seriously looking at advertising. Netflix reported a loss of 2,00,000 paid subscribers in the first quarter of 2022. The company also projected it will lose 2 million more subscribers in the second quarter.
