Netflix partners with Microsoft for its ad-supported tier
Netflix recently announced it picked Microsoft to become its technology and sales partner for its new advertising-supported tier. This new tier should be a more affordable option for viewers while also drawing in additional revenue for the company. Its slowing growth has forced the streaming service to look at new ways to attract subscribers. And it is one solution it announced back in April after reporting a drop in its subscriber base.
The company set a tight time frame for this rollout, so it needed a third party to handle the sales and technology. Netflix has reportedly met with Google and Comcast, but these companies have rival streaming services. Microsoft will now be the exclusive server and seller of ads on Netflix. While Microsoft doesn't come to mind when you think about advertising sales, it generated US$10 billion in ad sales last year and bought Xandr, AT&T's ad business.