Netflix has announced its partnership with Microsoft to bring ads to the platform. Although the video streaming platform has given minor details related to the partnership, Netflix has stated that it will introduce a new plan on the basis of advertisement:
- Ad-free Basic
- Premium plans
The new plans will enable the user to see the ads accordingly on the platform, which was never seen before.
Here is everything we know about Netflix’s upcoming plans in collaboration with Microsoft.
In a blog post, Netflix said that it has partnered with Microsoft as the “global advertising technology and sales partner."
The company further said that Microsoft has proven the ability to support Netflix for all its advertising needs. This move will help both the companies to work together for building a new ad-supported offering.
Netflix said, “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."
Netflix has further stated that the plan is scheduled for early days, and here is everything you must know about the Netflix ads.
Netflix announced the addition of the advertisement and it came in the picture after a drop in subscribers in the last quarter.
Netflix will bring a cheaper subscription plan, To attract new customers and these plans will run ads.
At present, Netflix’s most affordable plan is costing around Rs 149 per month, which is a mobile plan that only runs in 480p video quality and could be viewed only on smartphones and tablets and has one screen usage only.
How will these ads help Netflix to make money?
- Netflix has enough data to sell advertisements easily, as it has close to 222 million user-base across the world.
- In partnership with Microsoft, Netflix will help the company to develop ad tools and sales.
- The new plan will bring new subscriptions from different regions and countries, where people do not necessarily pay for premium subscriptions.
Netflix has been discouraging password sharing but talking to the customers, they are not willing to stop this as other OTT platforms are allowing this service for multiple usages. The company further announced that it will levy a nominal fee for those who are sharing their passwords and Netflix further launched a pilot in three countries (Peru, Costa Rica, and Chile) to encourage users not to share passwords. No doubt it was not appreciated by the users, and many withdrew their accounts from Netflix
Microsoft’s role as a partner with Netflix
Microsoft said in a blog post that it is “thrilled to be named Netflix’s technology and sales partner to help power their first ad-supported subscription offering."
It further said that all the ads which will be served on Netflix will have exclusivity and will be available through the Microsoft platform. This means that the marketers will be looking at Microsoft’s advertising needs and will further have the access to Netflix’s audience and premium connected TV inventory.