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Netflix appoints Microsoft to launch ad-supported subscription service

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By Danielle Long | Asia Pacific Correspondent

July 14, 2022 | 3 min read

Netflix will work with Microsoft to launch its ad-supported subscription plan for consumers.

How has Netflix transformed the TV ecosystem?

Netflix selects Microsoft to power its advertising service

The streaming giant has appointed Microsoft as its global advertising technology and sales partner to power the launch of the ad platform.

Netflix chief operating officer and chief product officer Greg Peters, said, “Microsoft has the proven ability to support all our advertising needs as we work together to 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.

“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.”

The move is a huge endorsement for Microsoft's advertising business which will have access to a wealth of premium content.

Microsoft’s president of web experiences Mikhail Parakhin, said, “Marketers looking to Microsoft for their advertising needs will have access to the Netflix audience and premium connected TV inventory. All ads served on Netflix will be exclusively available through the Microsoft platform.

He added, “Today’s announcement also endorses Microsoft’s approach to privacy, which is built on protecting customers’ information.”

Netflix announced its plans to introduce a lower-priced ad-supported subscription offer for consumers in April. The plan, which will be in addition to its existing ads-free plans, was a significant reversal of the company’s previous opposition to introducing advertising.

The move comes as Netflix looks to boost customers after announcing a net loss of 200,000 subscribers globally. It’s also a bid to compete with rivals such as Disney+ and HBO Max, which are offering ad-supported plans to consumers. The streaming giant had been in talks with Google, Comcast and Roku for the service.

The announcement delivered a welcome boost to Netflix’s shares, which have dropped 70% this year.

Media Planning and Buying Future of TV Future of TV

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