Microsoft teams up with Netflix to offer cheaper, ad-supported subscriptions

Netflix logo and remote control

Netflix has previously confirmed plans to introduce an ad-supported tier that would provide a lower cost subscription entry point. Details have been somewhat lacking, but it has just been announced that Microsoft is partnering with the streaming video service as it introduces cheaper plans.

The company has signed a deal with Netflix, with the streaming giant describing Microsoft as "our global advertising technology and sales partner".

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In a press release, Netflix says: "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".

The company goes on to say:

Microsoft has the proven ability to support all our advertising needs as we work together to 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.

Details of the deal are a little thin on the ground, but both companies are expressing their excitement about the partnership.

Microsoft's president of web experiences, Mikhail Parakhin, says:

We're thrilled to be named Netflix's technology and sales partner to help power their first ad-supported subscription offering.

At launch, consumers will have more options to access Netflix's award-winning content. 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. Today's announcement also endorses Microsoft's approach to privacy, which is built on protecting customers' information.

"This is a big day for Netflix and Microsoft. We're excited to offer new premium value to our ecosystem of marketers and partners while helping Netflix deliver more choice to their customers".

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