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Netflix partners with Microsoft on cheaper ad-supported streaming tier

Following the launch of the less expensive alternative, Microsoft will become Netflix’s “global advertising technology and sales partner”



Netflix partners with Microsoft on cheaper ad-supported streaming tier

According to a statement released by Netflix on Wednesday, Microsoft will be a part of its forthcoming ad-supported streaming service. Following the launch of the less expensive alternative, the streaming service claims that Microsoft will become its “global advertising technology and sales partner.”

“It’s very early days and we have much to work through,” Netflix COO Greg Peters writes in the post. “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.”

Marketers will work with Microsoft to bring adverts to the Netflix ecosystem

According to a post on Microsoft’s blog, marketers will collaborate with Microsoft to introduce advertisements to the Netflix ecosystem. Microsoft’s president of web experiences, Mikhail Parakhin, said that the announcement “also endorses Microsoft’s approach to privacy, which is built on protecting customers’ information.”

Netflix originally hinted at a lower-cost, ad-supported plan in May, then confirmed it last month. Netflix hasn’t provided an official launch date. However, the tier is expected to be made accessible to users by the end of 2022. After the business disclosed a decline in members for the first time in a decade last quarter, peaking at 222 million globally, word of Netflix’s ad-supported tier spread. To help counteract a drop in users and income, the corporation is also looking into live streaming. Moreover, the company is also looking into measures to crack down on password-sharing.

Choosing Microsoft recalls a good collaboration and relationship between the two for streaming launches. The early version of Watch Instantly, which mostly streamed B-movies, used Microsoft’s Silverlight technology to provide video rather than the more prevalent Flash Player until it was replaced by HTML5. And the Xbox 360 was the first console to include an HD Netflix streaming app.

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