Netflix collaborates with Microsoft to launch cheaper, ad supported subscription plan
Netflix COO Greg Peters elaborated on the collaboration, saying, "We're still in the early stages, and there's a lot to figure out. Our long-term aim, however, is clear: more options for consumers and a premium, better-than-linear TV brand experience for advertisers ".
Netflix and Microsoft have announced a collaboration to build Netflix's first ad-supported subscription service. The news comes months after Netflix introduced a new ad-supported service in response to the company's declining subscriber base. Both firms announced the current announcement on separate blogs, although it is unclear when the new ad-supported model will be available. The subscription's specifics are likewise unknown.
Microsoft says it is "ecstatic" to be designated Netflix's technology and commercial partner. Marketers that turn to Microsoft for advertising will have access to the Netflix audience as well as linked TV inventory. All advertisements delivered on Netflix will only be available through the Microsoft platform.
Netflix states that its existing ad-free basic, standard, and premium plans will be available to both new and existing users. Netflix COO Greg Peters elaborated on the collaboration, saying, "We're still in the early stages, and there's a lot to figure out. Our long-term aim, however, is clear: more options for consumers and a premium, better-than-linear TV brand experience for advertisers ".
Netflix stated in a blog post that the new idea is still in its early stages. Given that this is the first formal announcement, we anticipate that the new tier will be available within the next several months. Netflix claims that its goal is to provide customers with more alternatives and to provide marketers with a better-than-linear TV brand experience.
Netflix has enough data from its over 222 million users to readily sell adverts. Collaboration with Microsoft will also aid in the development of ad technologies and sales. While marketers will welcome the option to advertise on Netflix, the new plan will also include a new subscription, which may be more popular in places such as India, where consumers do not always pay for premium subscriptions.
The online-streaming company made the statement after the firm reported a decline in subscribers in the previous quarter. As a result, Netflix is putting more effort into acquiring new consumers. According to the corporation, in order to attract new users, Netflix will provide a lower-cost membership package that would include advertising. The lowest Netflix plan is now Rs 149 per month, which provides customers the "Mobile" plan, which only supports 480p video on one smartphone or tablet at a time.