Microsoft has been named Netflix’s global advertising technology and sales partner to help power the streaming platform’s first ad-supported subscription offering.
Netflix, after losing subscribers for the first time in a decade and projecting a 2 million decline in the upcoming quarter, said in April that it would introduce a new lower priced ad-supported subscription plan for consumers, in addition to its existing ads-free basic, standard, and premium plans.
At Cannes Lions, Netflix confirmed it was in talks with several companies for advertising partnerships, reportedly meeting with Google, NBCUniversal and Roku to discuss potential ad sales and marketing partnerships.
Unlike Google, which owns YouTube, and Comcast, which owns NBCUniversal’s Peacock, Microsoft doesn’t operate a competing streaming service to Netflix.
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.
Mikhail Parakhin, President Web Experiences, Microsoft said: “We’re excited to offer new premium value to our ecosystem of marketers and partners while helping Netflix deliver more choice to their customers.”
Netflix COO Greg Peters 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.
“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.”
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