Netflix Announces Deal With Microsoft To Provide Ad-Support For New Subscription Tier

Netflix is moving forward with plans to implement an ad-supported version of its subscriptions in a new partnership with Microsoft.

This year, the conversation around Netflix possibly creating a new tier that would serve as a cheaper, ad-supported subscription option got very real. So real that the idea of it even brought on some backlash online. However, despite some pushback, the streaming platform is looking toward the future of having ads, and to help them move closer to their goal is Microsoft.

On Wednesday, Netflix and Microsoft announced their new partnership, in which Microsoft will provide advertisements to the streaming service.

“We’re thrilled to be named Netflix’s technology and sales partner to help power their first ad-supported subscription offering,” reads the announcement in a Microsoft blog post written by Mikhail Parakhin, President of Web Experiences at Microsoft. “All ads served on Netflix will be exclusively available through the Microsoft platform. Today’s announcement also endorses Microsoft’s approach to privacy, which is built on protecting customers’ information.”

Right now, there are no details on how the ads will be distributed throughout Netflix’s content.

“Microsoft has the proven ability to support all our advertising needs as we together 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,” said Netflix COO Greg Peters in a statement.