Netflix Partners with Microsoft on Ads
- Paul Thurrott
- Jul 13, 2022
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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.