- Kyle Chua
Netflix Joining Forces With Microsoft To Launch Cheaper Ad-Supported Subscription
Netflix is a step closer to bringing ad-supported plans to the platform, with the popular streaming service announcing that it’s working with Microsoft on the new subscription option.
"Microsoft has the proven ability to support all our advertising needs as we work together to build a new ad-supported offering," said Netflix COO Greg Peters in a statement.
Netflix said the new plan will be an addition to the existing basic, standard and premium plans rather than a replacement. This means the platform itself will, for the most part, remain an ad-free experience. It’ll simply be expanding its offerings to suit different viewing preferences and budgets, with the ad-supported plan costing much less than the others.
Mr Peters said the development of the plan is still in its early phases, but the goal for it is clear: "more choice for consumers and a premium, better-than-linear TV brand experience for advertisers".
Microsoft will handle all the ads within the Netflix ecosystem, leveraging its technology and sales capabilities to support customers.
"Marketers looking to Microsoft for their advertising needs will have access to the Netflix audience and premium connected TV inventory," writes Mikhail Parakhin, President of Web Experiences at Microsoft in a blog post. "All ads served on Netflix will be exclusively available through the Microsoft platform."
Microsoft is also rumoured to be considering bringing ads into free-to-play games in its Xbox library. Sources familiar with the matter told Insider the software giant wants to do so without disrupting the gameplay experience. The plan, for example, is to put up real-world ads on a billboard in a racing game or have sponsored skins pop up in match lobbies.
An ad-supported Netflix plan was first hinted at a few months ago, shortly after the company disclosed it lost subscribers for the first time in over a decade. While pricing and release details for the new plan have yet to be announced, it's widely believed to become available before the end of this year.
The new plan seems like Netflix's latest attempt to convince subscribers to stay on the platform after the sharp drop reported last quarter. The service previously clamped down on password-sharing to stop users from different households from sharing a single account.
Netflix is working with Microsoft to launch a more affordable, ad-supported subscription plan.
The new plan will be an addition to the service's existing plans rather than a replacement. This means Netflix itself will for the most part remain an ad-free experience.
Microsoft will handle all the ads within the Netflix ecosystem, leveraging its technology and sales capabilities to support customers.
While pricing and release details for the new plan have yet to be announced, it's widely believed to become available before the end of this year.