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Netflix Names Microsoft As Its New Advertising Technology And Sales Partner

Netflix might be more than one year away from conducting the launch of its ad-themed subscriptions but it definitely has its mind sorted on a number of other decisions.

The world’s leading streaming service network has officially decided to partner up with Microsoft to help power its advertising and sales subscription plans.

The company announced the breakthrough decision today, also boldly outlining why it chose to stick to Microsoft amid a plethora of other options. And that’s when it was revealed that Netflix has seen the software giant as someone that’s proven its capabilities over the years.

Hence, it feels strongly that it can also support the firm’s widespread advertising needs. In addition to that, Netflix highlighted how the tech giant offers a great range of diversity and flexibility for innovation on the sales and technical side.

This coupled with its strong privacy regulations for all customers turns out to be a major bonus for the company and its members, Netflix revealed.

Netflix says that after providing users so many years of ad-free service, they’re jumping on the advertising bandwagon for obvious reasons. And that’s so the new tier could do a better job at opening up itself in the market and attracting consumers who are willing to pay.

The news comes amid so many critics’ concerns that their growth is faltering and even shrinking.

This year in April, we saw the firm confirm that more than 100 million homes were taking advantage of freeloading from the site, thanks to its password-sharing ability.

The decision to name Microsoft as its new partner was confirmed through a post on Twitter by Microsoft’s CEO who stated his joy at the news, adding how the company wishes to work with more publishers on platforms where ad monetization is the call of the day.

This would assist in providing more individuals with so much content that they admire, no matter where they are in the world.

But if you’re wondering the costs are likely to peak to new heights with the new advertising plan in place, well, that’s not the case, or at least we hope so.

Netflix confirmed that the cost would be substantially less than what we normally see for Netflix’s basic package. And that’s around $10 a month.

Meanwhile, the steps being taken to bring such plans to life aren’t too easy as experts revealed how the company needs to design a huge backend plan that can place relevant ads into the system at the right position.

Similarly, the job would need the hiring of several huge brands who are out there advertising on Netflix. Another huge factor that needs to be dealt with is the issue of marketing systems violating the privacy of users by snooping around and seeing which content sells the most.

Previously, we heard rumors about how Google or perhaps NBC Universal could be adopted by Netflix for the same role. But after today’s announcement, all misunderstandings are clear.

Microsoft confirmed that it would be the sole provider for advertisements on the platform’s new plan.


Read next: Disney’s Ad Revenue Soars Past Netflix, Gap Expected to Narrow by 2025

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