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

The company said Wednesday that it is partnering with Microsoft. Microsoft will become its global advertising technology and sales partner once the cheaper option is available.

Greg Peters wrote in the post that the company has a lot to work through. Our long-term goal is clear. Consumers have more choices and advertisers have a better experience. We are looking forward to working with Microsoft as we bring this new service to life.

We’re thrilled Netflix has selected Microsoft as its advertising technology and sales partner. We want publishers to have more long-term viable ad monetization platforms, so more people can access the content they love wherever they are. https://t.co/QmPszxJTOf

— Satya Nadella (@satyanadella) July 13, 2022

The marketers will work with Microsoft to bring ads to the service. Microsoft's president of web experiences says that the announcement supports the company's approach to privacy. Microsoft is looking into putting ads in free-to-play games.

In May, there was a hint of a cheaper tier, and last month there was a confirmation. The tier is rumored to be available to customers by the end of the year. The news of the ad-supported tier came after the company revealed a decrease in subscribers for the first time in a decade. The company is looking at ways to mitigate a decline in subscribers and revenue by banning password sharing.

There was a close relationship between Microsoft and the streamer. 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