Microsoft and Netflix are teaming up to offer ads on their series. AP photo
In a market saturated with offerings like video streaming, Netflix, the leader of this contingent, explores new ways to retain his audience in the face of the loss of subscribers. The latest strategy is an alliance with microsoft.
The giant that has based all its power on subscriptions to stream ad-free movies and series has just partnered with Microsoft to offer a new cheaper plan, but with advertising. The company founded by Bill Gates was selected as a global sales and advertising technology partner.
The collaboration comes in the wake of a surprising announcement from Netflix in April that it was open to offering an ad-supported subscription option at a lower cost, something its CEO Reed Hastings he had refused for years.
The advantage of having a giant like Microsoft is that it can “meet all needs” to work on the new ad-supported subscription.
The least expected alliance: Microsoft and Netflix.
Furthermore, the company managed by Satya Nadellapromised to continue innovating over time, both from the side of advertising technology like sales, and thus offer “strong privacy protections” for users.
“It’s very early and we have a lot to work on. But our long-term goal is clear,” Netflix says in a press release, also ensuring that this movement responds by providing more options for consumers and a new brand experience.
In this way, the Redmond company will help promote Netflix’s first subscription offer with advertising, of which we do not yet know the price or arrival date, but it is a fact.
In this testing phase, Microsoft will be the sole advertising partner, so all ads will go through their platform, as they comment on their official blog.
And although it didn’t make any mention of it, Netflix had indicated it, if the results they are not those expecteddid not rule out changing plans on the fly and, later, regaining full control of advertising.
Netflix in crisis due to the loss of subscribers
Microsoft is considered the best partner. AP photo
Before shaking hands with Microsoft, Netflix held talks with other companies, including Google, one of the most important players in the online advertising sector, Magnite, the largest advertising platform, and FreeWheel, a company of the American telecommunications giant Comcast.
The new plan, which could be announced in the coming months, it will not replace those who offer ads, but it will be provided as another option. Customers will be able to decide whether to pay less, but with ad breaks, or to keep the subscription forever.
The company, which began shipping DVD movies and series to subscribers in the late 1990s, has grown steadily over the past decade.
But right now, the company is in one of the most critical periods in its 25-year history, after Netflix recorded its first loss of quarterly subscribers in more than a decade.
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Source: Clarin
