Microsoft and Netflix are working together to power Netflix’s initial subscription service with advertising. Microsoft will be the company’s worldwide advertising technology and sales partner, according to a statement from the business. Back in April, Netflix had revealed plans to provide a brand-new, more affordable ad-supported membership.
After Netflix announced a challenging quarter with a drop in subscribers, Netflix joined up with Microsoft to create an ad-supported streaming service for Netflix. The “current ads-free basic, standard, and premium plans” will be added in addition to the “new plan with commercials.” For Kenya, Netflix also offers a mobile-only package.
“Microsoft has the demonstrated capacity to serve all our advertising demands as we work together to establish a new ad-supported product,” Netflix stated in a blog post. More crucially, Microsoft provided our members with solid privacy safeguards while allowing for future technological and commercial innovation. Through this arrangement, Microsoft’s technology will be used to deliver all adverts on the streaming service. It was previously reported that Google and NBC Universal, a division of Comcast Corporation, were in negotiations with Netflix about possible alliances.
According to a statement from Microsoft, “Marketers that turn to Microsoft for their advertising requirements will have access to the Netflix audience and premium connected TV inventory. The revelation made today also supports Microsoft’s privacy strategy, which is based on safeguarding customer data.
When will Netflix start Serving ads?
First, Netflix will keep its ad-support plans distinct from its regular ones. Because they would have adverts, these more recent plans might be far less expensive. Given that the mobile, basic, and standard plans in Kenya are frequently far less expensive than those on the US market, it is unclear if Netflix will make any modifications to these packages. On their more basic plans, rivals like Disney+Hotstar do give advertisements.
Previous rumors suggested that Netflix’s ad-supported plans would be implemented by the end of 2022. It’s unclear if they would be made available internationally or if Netflix will launch them in a few particular nations initially.
Additionally, Netflix wants to tighten down on account sharing and may start to restrict access to only immediate family members shortly. Customers may soon be charged for disclosing account passwords to other friends and family members.