Netflix Teams Up With Microsoft For Ad-Supported Netflix Subscription

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Netflix Teams Up With Microsoft For Ad Supported Netflix Subscription
Image: Microsoft

Recently, the news made rounds on the internet that Netflix could offer a low-cost, ad-supported subscription. This shook viewers, with many hoping it wouldn’t happen. It seems like that has become a reality as Microsoft and Netflix have partnered with the content-streaming app’s ad-supported service.

Partnership with Microsoft

COO of Netflix, Greg Peters, said that Microsoft provides the assistance they need to build an ‘ad supported offering.’ He added that the tech giant also offered flexibility to innovate with time on the sales and technology side, along with providing tight security for users.

The president for web experiences at Microsoft, Mikhail Parakhin, said that marketers who avail Microsoft’s services for advertisement would have access to Netflix viewers. All the ads served on Netflix will be available through the Microsoft platform.

Netflix
Image: Pexels

The firm is yet to release how much it will charge customers for the new service. It is important to mention that the subscription plan will be added to the existing list of plans (basic, standard, and premium). Hence, it will be a more pocket-friendly option for those who want to watch Netflix but don’t want to pay too much.

Is Netflix going back on its word?

The video-streaming giant has been against advertisements for a long time, but it has had to go back on its words due to the recent loss in revenue it has experienced.

To attract more users, Netflix increased the spending on its content, particularly originals. The company announced a price hike in its services to make up for that. While this did generate revenue, it also led to a loss of subscribers as the company saw 600,000 people discontinue the use of its services in the U.S. and Canada alone.

Netflix has also announced that it could lose up to 2 million subscribers during the second quarter, so it’s safe to assume that the new ‘subscription option’ could benefit Netflix.

For the past several months, it had interviewed potential partners, including Google and Comcast, before it eventually landed on Microsoft. The development is still in its early days, and a lot of work is left to implement it. Hence, it could be some time before we see an ad-supported subscription plan.

Abhishek Mishra

Abhishek Mishra

I love exploring technology and devote my time to curating detailed posts and supplying credible information to inquisitive users. I wish I had some spare time to play a few RPGs or clean my desk.

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