Netflix stated in April that it would launch a new lower-cost ad-supported subscription plan for users, in addition to its existing ad-free basic, standard, and premium plans.
Netflix has now revealed that it will collaborate with Microsoft to achieve this goal.
“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.” said Greg Peters, Chief Operating Officer and Chief Product Officer at Netflix.
“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.” said Mikhail Parakhin, President Web Experiences at Microsoft.
Although Netflix has not revealed an official release date for the tier, it is expected to be accessible to consumers by the end of 2022. The announcement of Netflix’s ad-supported tier came after the business disclosed a drop in subscribers for the first time in a decade.
To assist minimize a drop in subscribers and revenue, the company is also looking into livestreaming and ways to crack down on password sharing.