Netflix announced in April that it would be bringing a cheaper subscription plan. With this subscription, users will be able to stream movies at a more affordable price, but with short advert clips placed within the stream. Now, the company has confirmed its partnership with Microsoft to bring this ad based subscription plan to users.
On Wednesday, Microsoft and Netflix correspondents took to their official pages to make this announcement. The partnership will bring Ads to the streaming platform. These Ads will be exclusive to Microsoft, which means that Microsoft will run these Ads with their technology.
Marketers and partners affiliated with Microsoft will get an edge here as they here as their business Ads will run on Netflix. According to Netflix COO Greg Peters, “Microsoft has the proven ability to support all our advertising needs.” The privacy of those using the streaming platform is of top priority in this partnership.
Microsoft is not the biggest company with Ads on the internet, so why did Netflix go with them? Google could have been a much easier company/advertiser to collaborate with but the possibility of a profitable partnership between Netflix and Google is awfully slim.
A few months ago, Netflix was struggling with subscriptions and the loss of users. Investigations reveal that Google had a role to play in Netflix’s loss with a YouTube product. In direct competition with the Scott Valley company, Google launched YouTube Original, a film streaming platform.
At the moment, Microsoft has no film streaming service to its name, so Netflix can rebuild its empire with them. The Ad subscription tier might help pull more users to the streaming platform. We have to wait for the next few months to see this feature become available for users across the globe.
