In a game-changing partnership, Netflix has teamed up with Microsoft to overcome its business crisis with a low-cost plan based on ads.
After a substantial stock crash in late April, Netflix is now taking action to counteract the critical situation.
Among the first steps is a high-profile partnership with a major player in the tech space — Microsoft.
The purpose of the collaboration is to create a new, “lower priced” and “ad-supported” alternative for subscribers.
What do Netflix and Microsoft representatives have to say about the ads partnership?
In a recent media release, a top Netflix executive outlines the reasons why the streaming platform chose Microsoft as their ads partner.
“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 Peters, Netflix Chief Operating Officer and Chief Product Officer, explains.
In addition, the Netflix executive highlights the long-term vision for the partnership. Peters summarizes the dual-target benefits as, “more choice for consumers and a premium, better-than-linear TV brand experience for advertisers.”
Simultaneously, Mikhail Parakhin, President Web Experiences at Microsoft, dives deeper into the details of the collaboration.
“Marketers looking to Microsoft for their advertising needs will have access to the Netflix audience and premium connected TV inventory,” Parakhin shares, also mentioning, “All ads served on Netflix will be exclusively available through the Microsoft platform.”
For the time being, both Netflix and Microsoft have expressed their enthusiasm for the alliance. In closing, it is important to note that the ads subscription plan is still in early stages of development.