Netflix Partners with Microsoft on Ads

Posted on July 13, 2022 by Paul Thurrott in Microsoft, Netflix with 8 Comments

Netflix plans to introduce a new low-cost, ad-based version of its streaming video service, and it is partnering with Microsoft to make it happen.

“We’re thrilled to be named Netflix’s technology and sales partner to help power their first ad-supported subscription offering,” Microsoft president Mikhail Parakhin announced. “Consumers will have more options to access Netflix’s award-winning content. Marketers looking to Microsoft for their advertising needs will have access to the Netflix audience and premium connected TV inventory. All ads served on Netflix will be exclusively available through the Microsoft platform. Today’s announcement also endorses Microsoft’s approach to privacy, which is built on protecting customers’ information.”

“Microsoft has the proven ability to support all our advertising needs as we work together to build a new ad-supported offering,” Netflix COO Greg Peters added. “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.”

Those two mentions of privacy most likely explain why Netflix chose Microsoft over Google; Google was previously widely expected to be the company that delivered ads for Netflix.

It’s not clear when Netflix’s new service will debut.

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Comments (8)

8 responses to “Netflix Partners with Microsoft on Ads”

  1. miamimauler

    Damn, Microsoft are drunk on the Google kool aid.


    First it was a Chromium browser, then an Android mobile system and now the ever growing MS ad network that MS have been obnoxiously pushing in Windows.


    Oh well MS, if you can't beat then...


    Having said all that if I were a MS investor I would be pleased in the direction MS are taking. Not great for everyday users but great for investors.

    • spiderman2

      Not much related to the news...but ok

    • rm

      MS has had advertising for over a decade (very small market share compared to Google). Not sure where anything has changed.

  2. anoldamigauser

    I think Netflix realized that both Google and Comcast/Universal are competitors in streaming, so giving them access to their business data would be a bad idea.

  3. davepete

    I'm worried this will be another black eye for Microsoft. Netflix, a formerly ad-free streamer, suddenly gets ads provided by Microsoft. When the ad-supported Netflix has bugs or the ads don't work right, people will blame Microsoft for screwing up Netflix. How did the Surface devices and the NFL work out? I mainly hear reports of players and coaches throwing them.

    • William Clark

      You can still stream ad-free. You just pay more.


      As for Surface and Football, I see them being used all the time on the sidelines. Is throwing them related to the Surface or related to a bad play or some other non-device related issue?

  4. LauraCatPJs

    I think many folks don't realize the "enemy of my enemy is my friend" nature of partnerships and cloud-computing. Walmart and Netflix are partners of Microsoft, not just because of long relationships and/or board memberships/investment, but because they want a counter to Amazon (content) or Google (search).


    Partnering is a two-way street and that means some projects don't make a lot of sense on the surface, at least not for one of the partners. Some may be trials or tests with perceived lower-risk because a partner is involved and bears responsibility should it not work. But however dumb something may seem, getting data to decide that rather than only an emotional opinion is usually sound.


    I happen to think (emotional opinion + perspective of just one customer) this is a terrible idea. But kudos to Netflix and Microsoft for teaming up, trying things, observing the results, and learning from it all.