As you probably know, the streaming service powerhouse Netflix has decided to introduce an ad-supported subscription plan to its platform. And now, the company has found a partner for this venture.
Netflix announced on Wednesday that tech giant Microsoft would be its partner for the technology and sales part of the ad business. Microsoft itself previously reached $10 billion in advertising sales in 2021.
Netflix previously engaged in talks with NBCUniversal and Google about the exclusive partnership that would provide the company with a smoother introduction of ads.
“Microsoft offered the flexibility to innovate over time on both the technology and sales side, as well as strong privacy protections for our members,” said Netflix COO Greg Peters.
After the news was made official, Netflix’s shares jumped close to 2% and closed at $176.56 on Wednesday. In this year alone, Netflix stock lost more than 70% of its value as the company struggled to deal with the loss of subscribers.
Netflix’s decision to introduce an ad-supported plan was announced in June. According to the company, the decision won’t affect current users. Instead, its main aim is to attract customers who are willing to watch ads for a lower subscription price. The ad-supported plan should become available by the end of the year.