Netflix has officially announced plans to create a new, cheaper subscription service. Through the plan, this media streaming company seems to be presenting an option with advertising support on their service.
Recently, Netflix has reportedly found a partner for its upcoming ad-supported service. Launching Engadget (14/7), the company revealed, will work closely with Microsoft in these efforts.
Netflix explained, Microsoft will help them as a provider of advertising and sales technology. This is according to a statement published by Microsoft in a post on their official blog.
“Microsoft offers the flexibility to innovate over time on the technology and sales fronts, as well as strong privacy protections for our members,” said Netflix Chief Operating Officer Greg Peters, quoted from Engadget.
Peters revealed, Microsoft was chosen as a partner in the marketing department because it has proven capabilities. In addition, he said, this technology giant also has strong user privacy data protection.
However, Microsoft is unlikely to get involved in operating the competing streaming service. However, all ads that are shown on Netflix will be available exclusively through the Microsoft platform.
“Marketers looking to Microsoft for their advertising needs will have access to Netflix viewers and premium connected TV inventory,” wrote Microsoft President Web Experiences, Mikhail Parakhin, in a recent note on the company’s official blog.
For information, Netflix Co-CEO, Reed Hasting, first revealed that the company was exploring a cheaper plan in April. The admission comes after Netflix announced that it had lost two hundred thousand subscribers in the first quarter of 2022.