Netflix’s new ad-supported tier is happening as part of a partnership with Microsoft. The news comes from a tweet by Satya Nadella, Chairman and CEO of Microsoft Corporation.
We’re thrilled Netflix has selected Microsoft as its advertising technology and sales partner. We want publishers to have more long-term viable ad monetization platforms, so more people can access the content they love wherever they are. https://t.co/QmPszxJTOf
– Satya Nadella (@satyanadella) July 13, 2022
Microsoft will be “Netflix’s technology and sales partner to help power their first ad-supported subscription offering” according to an official post on Microsoft’s blog.
“All ads served on Netflix will be exclusively available through the Microsoft platform. Today’s announcement also endorses Microsoft’s approach to privacy, which is built on protecting customers’ information, ”the post continues.
In a post on Netflix’s website, Greg Peters, Chief Operating Officer and Chief Product Officer, wrote, “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.
“Microsoft has the proven ability to support all our advertising needs as we together 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. ”
In April, Netflix CEO Reed Hastings said the streaming giant was “quite open” to an ad-supported subscription mode. This new ad-based subscription announcement follows the company’s loss of 200k subscribers and a subsequent tank of its stocks in April.
Netflix isn’t the only company open to more ads. Microsoft is reportedly looking into adding ads to some free-to-play Xbox games.
Netflix has seen much success with its most recent season of Stranger Things. The fourth season of the 80’s sci-fi horror show became the first English-language Netflix show to surpass a billion hours of watch time. The only show that’s beaten it is Squid Game, which had the biggest series launch ever for Netflix.
Casey is a freelance writer for IGN. You can usually find him talking about JRPGs on Twitter at @caseydavidmt.