Netflix is partnering with Microsoft for its new ad-supported tier

Netflix is partnering with Microsoft for its upcoming ad-supported streaming tier, the company announced Wednesday. The streaming service says Microsoft will turn into its “global advertising technology and sales partner” upon rolling out the cheaper possibility.

“It’s very early days and we have much to work through,” Netflix COO Greg Peters writes within the put up. “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.”

In a post on Microsoft’s blog, the corporate says entrepreneurs will work with Microsoft to deliver adverts to the Netflix ecosystem. “Today’s announcement also endorses Microsoft’s approach to privacy, which is built on protecting customers’ information,” Mikhail Parakhin, Microsoft’s president of internet experiences, says. Outside of Netflix, Microsoft can be reportedly trying into bringing adverts to free-to-play Xbox video games.

Netflix first hinted at a less expensive, ad-supported tier in May and later confirmed the chance final month. Although Netflix hasn’t introduced an official date for the tier’s rollout, it’s rumored to turn into obtainable to clients by the top of 2022. News of Netflix’s ad-supported tier emerged after the corporate revealed a lower in subscribers for the primary time in a decade final quarter, topping out at 222 million globally. The firm can be exploring livestreaming and methods to clamp down on password-sharing to assist mitigate a decline in subscribers and income.

Choosing Microsoft remembers a detailed relationship between the 2 for streaming launches. The first model of Watch Instantly that streamed principally B-movies used Microsoft’s Silverlight know-how to ship video as a substitute of the extra frequent Flash Player till it was changed by HTML5, and the Xbox 360 was the first console with an HD Netflix streaming app.