According to a joint statement from the two companies, Microsoft will join Netflix as an advertising technology partner for a new subscription model. Additionally, Microsoft has pledged technical assistance for the service, including user privacy protection.
Here is what Netflix COO Greg Peters had to say:
“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.
He further adds:
“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.
Greg asserts that Microsoft has demonstrated its capacity to meet all of the video service’s advertising requirements, and the businesses are now working together to create an ad-sponsored solution. Microsoft pledges technological and commercial advances as well as dependable user privacy protection. The top management listed giving customers more options and marketers more lucrative plans as long-term objectives.
Remember that this decision comes after the company recently introduced its free plan here in Kenya to tap many users in the system. Even though some regions of the globe are yet to adopt this method, launching a cheaper ad-based subscription would be appropriate to increase its global consumer base, which has been declining lately.