Netflix and Microsoft partner for new ad-supported streaming


Netflix has announced plans to partner with Microsoft for its new ad-supported streaming tier.

The company will launch an ad-supported tier in the coming months, and Microsoft will handle all ad sales for the platform. The company revealed earlier in the year that it would bow to pressure and launch a cheaper subscription service, following lower-than-expected subscriber numbers and increased competition from the likes of Hulu, Disney, and Apple.

“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,” the company said in a statement.

“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.”

We still don’t know any specifics on the launch of the new tier, but with Microsoft on board as the official advertising partner, the chances are that the release is just around the corner. Netflix currently offers a $9.99 basic package, so an ad-supported deal will likely come in at around $4.99 per month. How many advertisements will be included remains to be seen.

The company’s CEO told shareholders that he was confident a new ad-supported version would return Netflix to growth and appeal to customers who aren’t able to subscribe on a $10-20 monthly package, especially with fears of a recession looming around the world.

Would you sign up for an ad-supported Netflix subscription? Let us know and check back soon.

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