Netflix Partners with Microsoft to Create New Ad-Supported Subscription Plan

Streaming video service Netflix has announced a partnership with Microsoft to create a subscription plan with advertising. The company will also be responsible for advertising technology and ad sales.

Netflix COO Greg Peters said:

It’s very early days and we have much to work through. But our long-term goal is clear. More choice for consumers and a premium, better-than-linear TV brand experience for advertisers. We’re excited to work with Microsoft as we bring this new service to life.

Netflix chose Microsoft as a partner for at least two reasons: Microsoft does not own its own video service. Moreover, the company acquired Xandr, a data-enabled technology platform that powers the global advertising marketplace.

Netflix's ad-supported subscription plan first became known in May 2022 and was officially announced in June. Although Netflix has not announced an official date for the introduction of the plan, it could become available at the end of the year.