Netflix Partners With Microsoft To Roll Out New Feature

Netflix has announced it will be partnering with Microsoft to develop a new ad-focused subscription plan, which the streaming giant will offer subscribers an optional cheaper tier in response to recent price hikes.

After several months of rumours, Netflix officially confirmed it plans to roll out ads as soon as possible back in June. It's been a rough year for the company: its latest earnings report recorded its biggest loss in nearly 10 years, and soon after managed to wipe $50 billion of its value in less than 24 hours.

The new ad-supported tier is a way for Netflix to provide subscribers access to shows like Stranger Things, Squid Game, and all those shows that are randomly cancel after one season at a lower price.

The upshot, of course, is that this cheaper tier will require customers to sit through ads. It must be stressed that this new tier is entirely optional, and ads will not suddenly appear in the current subscription plans.

In a press release Netflix confirmed it's teaming up with Microsoft as part of the plan. While the company acknowledges it's "early days", Microsoft's status in the tech space makes it a smart pick for a collaboration.

"Today we are pleased to announce that we have selected Microsoft as our global advertising technology and sales partner," Netflix said in a statement. "Microsoft has the proven ability to support all our advertising needs as we work together to 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."

"At launch, consumers will have more options to access Netflix's award-winning content," Microsoft said its own statement "Marketers looking to Microsoft for their advertising needs will have access to the Netflix audience and premium connected TV inventory. Today's announcement also endorses Microsoft's approach to privacy, which is built on protecting customers' information."

There's no word yet on when exactly this new, cheaper tier will be rolled out, but previous reports suggest we'll see it before the end of 2022.