Netflix has named Microsoft as its technology and sales partner to help power the streaming giant’s first ad-supported subscription plan.
The news comes a day after the Wall Street Journal revealed that Netflix was attempting to alter and amend programming deals with major studios to allow series and films to premiere on its new ad-supported tier service.
According to Microsoft, its partnership with Netflix will see marketers use Microsoft for their ‘advertising needs’ and provide advertisers with access to the streamer’s audience and ‘premium connected’ TV inventory.
All ads served on Netflix will now be exclusively available through Microsoft’s platform.
“We’re excited to offer new premium value to our ecosystem of marketers and partners while helping Netflix deliver more choice to their customers,” Microsoft said.
READ MORE: Reactions: Will Netflix’s plans to implement ads work?
The tech company will also apply its approach to privacy to the deal, which is built on ‘protecting customers’ information’.
Netflix co-CEO Reed Hastings first revealed in an earnings call in April this year, that the streaming service had plans to roll out cheaper subscriptions by including advertising material in response to dwindling subscriber counts.
The streaming giant had lost 200,000 subscribers in the quarter prior to this announcement.
Netflix chief operating officer Greg Peters had this to say about the new collaboration with Microsoft:
“In April we announced that we will introduce a new lower priced ad-supported subscription plan for consumers, in addition to our existing ads-free basic, standard, and premium plans. Today we are pleased to announce that we have selected Microsoft as our global advertising technology and sales partner.
“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.”
Click here to sign up to Marketing Beat’s free daily email newsletter
