Netflix, Microsoft To Partner On Lower Cost Ad-Supported Service Tier
Netflix is partnering with Microsoft on a new ad-supported subscription plan, the streaming service revealed in a blog posting Wednesday.
“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,” stated Greg Peters, Chief Operating Officer and Chief Product Officer. “Today we are pleased to announce that we have selected Microsoft as our global advertising technology and sales partner.
“Microsoft has the proven ability to support all our advertising needs as we work together to build a new ad-supported offering,” he continued. “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.”
“It’s very early days and we have much to work through. 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,” added Peters.
Netflix revealed in its April earnings statements that it was looking for a partner to develop an ad-supported streaming tier as a tool to retain and expand its membership. At the time, Netflix had just started to lose market share to competitive premium SVOD streaming services like Amazon Prime Video and Disney+.
Yet to be revealed is exactly what form the ad-supported tier will take to avoid cannibalizing its current various ad-free service options with monthly fees in the U.S. that run: $9.99. $15.49. $19.99, depending on the number of screens that can be viewed at the same time, 1, 2, or 4; 4K content availability and other considerations.
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By Greg Tarr
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