Microsoft and Netflix collaborate on an ad-supported membership plan

Microsoft has been named as Netflix’s technology and sales partner, enabling the company to provide a more affordable subscription tier.

Previously, Netflix has announced a sizable drop in platform subscribers. As a result, the business contacted many businesses to launch a membership tier with advertising support.

The new service will complement the company’s current subscription levels. The costs will be less expensive than the going rates even if the service charges have not yet been disclosed.

In a statement, Netflix said, “Microsoft has the proven ability to support all our advertising needs as we together build a new ad-supported offering. 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.”

While the platform has a lot of work to do, it has a clear ability to offer “more choice for consumers and a premium, better-than-linear TV brand experience for advertisers.”

The whole collaboration will work in a way that “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.”

Netflix never wanted advertisements on its site, but after losing a significant number of users, the business was left with no other option.