Netflix: Ad-supported subscription to be produced in conjunction with Microsoft

US giant Microsoft becomes Netflix’s technology and business partner for a new streaming platform’s discounted subscription.

Despite discussions with Comcast and Google, Netflix ultimately chose Microsoft to manage advertising for its new subscription. A surprising association, but far from trivial, since the Redmond-based firm doesn’t own any video service that competes with Netflix like YouTube or Peacock, and has been the owner of Xandr, the market place for connected TV ads, since late last year. Microsoft for buying ads, namely the Microsoft Audience Network, which includes PromoteIQ solutions for retailers and the Microsoft Customer Experience platform for marketers, forms the backbone of Microsoft’s digital advertising platform.

We’re thrilled Netflix has selected Microsoft as its advertising technology and sales partner. We want publishers to have more long-term viable ad monetization platforms, so more people can access the content they love wherever they are. https://t.co/QmPszxJTOf

July 13, 2022

“Marketers who turn to Microsoft for their advertising needs will have access to Netflix viewing and premium connected TV inventory. All ads shown on Netflix will be available exclusively on our platform. This announcement also supports our vision for privacy, which is based on the protection of customer information,” said Mikhail Parakhin, President of Web Experience at Microsoft. “We’re excited to bring new premium value to our ecosystem of marketers and partners by helping Netflix bring more choice to its customers.”

Greg Peters, chief operating officer and chief product officer of Netflix, added: “Microsoft has the ability to meet all of our ad needs while we build this new offering. Above all, Microsoft provides greater flexibility to enable us to innovate over time, both technologically and business-wise, and takes important steps to protect the privacy of our subscribers. The project is in its infancy and we still have a lot of work to do. But our long-term goal is clear: we want to offer customers more choice and advertisers a premium experience that’s better than linear TV”and takes strict measures to protect the privacy of our subscribers.

CDN CTB