We recently found out that Netflix is almost ready to launch a cheaper subscription tier, supported by ads. It is expected to launch in the US by the end of the year, and will come to other markets throughout 2023. In a new announcement, Netflix have now confirmed that it will be partnering with Microsoft for its upcoming ad-supported streaming tier. Microsoft will become its “global advertising technology and sales partner” upon rolling out the cheaper option.
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We discussed the new subscription option in our latest episode of Tech Tuesday on Smile 90.4FM (listen down below), and it could be a viable option for many cash-strapped consumers in South Africa as well.
“It’s very early days and we have much to work through,” Netflix COO Greg Peters writes in the post. “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.”
“Today’s announcement also endorses Microsoft’s approach to privacy, which is built on protecting customers’ information,” Mikhail Parakhin, Microsoft’s president of web experiences, says.
This is not the only market Microsoft will bring ads infrastructure to soon. Microsoft is also reportedly looking into bringing ads to free-to-play Xbox games. Free-to-play games is a growing trend in the gaming industry, with companies then making money off of season play subscriptions for specific items or features, as well as loot boxes and content bundles.
It won’t be the first time the two companies work together on a major project, either. The first version of Watch Instantly that streamed mostly B-movies used Microsoft’s Silverlight technology to deliver video instead of the more common Flash Player until it was replaced by HTML5, and the Xbox 360 was the first console with an HD Netflix streaming app.
