Picture of a logo on Netflix

Netflix has announced that it’s to team up with Microsoft on a new ad-funded tier.

The streaming giant admitted back in April that it was finally open to exploring an ad-funded model in the wake of its first fall in subscriber numbers, with a drop of 200,000 in the first quarter of 2022.

Netflix confirmed that an ad-supported tier was indeed on the cards last month. At that time, the name being bandied around was online ad leader Google.

Now the company has revealed some the first solid details on such a cheaper subscription plan, and it seems Google didn’t hit the brief. In a post over on the Netflix website, the company revealed that it had selected Microsoft as its global advertising technology and sales partner.

“Microsoft has the proven ability to support all our advertising needs as we work together to build a new ad-supported offering,” said Netflix Chief Operating Officer and Chief Product Officer Greg Peters. “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.”

Microsoft, for its part, said that Netflix’s choice “endorses Microsoft’s approach to privacy, which is built on protecting customers’ information”.

There’s no specific timeline on when this new ad-funded tier might be implemented, and Netflix said that it was still “early days” with “much to work through”. Rumour has it that we could see such an ad-funded tier by the end of 2022.

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