Netflix Partners with Microsoft to Introduce Ad-Supported Plan


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Netflix has partnered with Microsoft to introduce an ad-supported streaming tier. Microsoft will be tasked with handling ad sales and handle all the advertising needs for the latest more affordable option.

“Today we are pleased to announce that we have selected Microsoft as our global advertising technology and sales partner.” Netflix announced on a blog on its website.

The partnership follows Netflix’s earlier announcement that it would introduce a new lower priced ad-supported subscription plan for consumers. Currently, the company offers subscribers ads-free options comprising basic, standard and premium plans.

Read: Netflix to help Produce Three Local Movies, Invest Sh33 million to Support Kenya’s Movies Industry

The streaming company said in June that the ad-supported plan was an option for users who did not wish to pay for the plans which start from Sh700 for the basic package. At the time, Netflix said it was in talks to on-board and advertising partner.

“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,” Netflix co-CEO Ted Sarandos said.

Netflix did not divulge more details regarding the roll-out or the package, saying there was still a lot to work through.

Read also: Netflix Increases Subscription Fees for US Customers

Microsoft commented on the partnership saying brands will benefit from Netflix audience.

“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,” the company said in a blog.

Netflix has experienced a plunge in subscriptions this year occasioned by stiff competition from rivals Amazons, HBO, Disney and Hulu. Apart from enhancing its content offering, the company hopes to attract more subscribers through the introduction of more affordable options on the platform.

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Written by Vanessa Murrey

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