Netflix Partners With Microsoft On New Ad-Supported Subscription Model

After much speculation on the matter, Netflix has confirmed that it intends to launch a cheaper ad-supported subscription to its streaming service later this year, and announced today that Microsoft will provide the platform and advertisement-selling that it needs.

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 companies have promised to respect consumer privacy, seeming to promise a version of advertising that does not use viewer data to hyper-target ads but is still superior to “linear TV.”

Netflix pitch summary;

Netflix: how well can you help up monetize our ad breaks?

Microsoft sales rep: Mark my word, We excel in it. Just give us access to it and we’ll show you all the powerpoints.

— AdTechGod (@AdtechGod) July 14, 2022

Netflix subscribers online were skeptical about the new ad-supported subscription, writing that they would probably leave Netflix if ads are introduced.

For decades, it was a long-standing company policy at the streaming service to not have ads, unlike competitors such as Hulu, though it too offers an ad-free option at a premium.

CNN reports that "Netflix with ads is coming" Fuck that, I already have Hulu. That'll cost you a subscriber for sure.

— The Mildly Irritated Irish Arkansan (@shaneleewalker1) July 14, 2022

#Netflix are you freaking television
The whole reason People Pay You is Avoid Television control
when how what you watch inundated with Ads,
You freaking put Ads
think your in trouble now?
You will be in a whole lotta trouble $💰wise
I won’t pay You
neither will Anyone Else

— flowerz (@bee10ved) July 14, 2022

Others took to Twitter after its outage, the number one place online where people share opinions, pointing out what they view as troubling consolidation in the world of tech and entertainment, two industries which – with the rise of streaming and decline of traditional TV – are increasingly intertwined.

The line between Xandr being acquired by AT&T where it sat for four years before being sold to Microsoft and will now be used to help power Netflix's ad business is a perfect example of all roads leading back to a handful of companies because all roads lead back to consolidation.

— julia alexander (@loudmouthjulia) July 13, 2022

.netflix</a> has partnered with <a href="https://twitter.com/Microsoft?ref_src=twsrc%5Etfw">Microsoft to launch an ad-supported streaming tier by the end of the year. https://t.co/Sdjg7ccA8q

— Axios Pro (@AxiosPro) July 14, 2022

The Netflix ad-supported service will likely debut later this year alongside its usual ad-free experience. It was announced in April, and judging by this latest Microsoft partnership announcement it seems development is moving forward at a rapid clip.