Netflix Partnering With Microsoft for Ad-Supported Streaming Tier

Microsoft will handle ad sales for the planned ad-supported streaming tier, which will be offered by Netflix. Microsoft will be able to support all of its advertising needs for the new option.

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.

Microsoft has the proven ability to support all our advertising needs as we work together to 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.

Ted Sarandos, the co-CEO of Netflix, said in June that the company is going to offer a cheaper ad-supported tier for customers who don't want to pay the full price for an ad-free plan. At the time, he said that the company was in talks with advertisers.

The Standard plan is more expensive than the Basic plan, but it has 480p streaming. The most expensive plan is the one that only offers 4K. The ad-supported tier will likely offer the same streaming quality as the Basic plan, despite the fact that there is an extra charge for improved streaming quality.

Following its disappointing first quarter, the company decided to offer a more affordable tier with advertisements. The company lost subscribers for the first time in a decade. It was blamed on a large number of households sharing accounts.

The plan to return to growth with the ad-based tier and the plan to more effectively monetize multi-household sharing through new restrictions that are being tested are two things that I believe will happen with the ad-based tier and the plan to more effectively monetize multi-household sharing through new restrictions

It's early days and there's a lot to work through, but the long term goal is to offer more choice for consumers and a premium, better-than-Linear TV brand experience for advertisers. It is thought that the ad-supported tier will be launched by the end of the year.