To provide a cheaper subscription tier, Netflix has announced Microsoft as its technology and sales partner.
Previously, Netflix had reported a significant loss in subscribers on the platform. As a result, the company reached out to different companies to start an advert-supported subscription tier.
The new service will be an addition to its existing subscription plans. While the service charges have not been announced yet, the prices will be cheaper than the current rates.
In a statement, Netflix said, “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.”
While the platform has a lot of work to do, it has a clear ability to offer “more choice for consumers and a premium, better-than-linear TV brand experience for advertisers.”
The whole collaboration will work in a way that “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.”
Although Netflix never wanted ads on its platform, however, after losing a good number of followers, the company didn’t have a choice.