In April of this year, Netflix admitted to working on plans with ads that would allow it to lower the price of the subscription. Later he made it clear that he would seek support from experienced companies to materialize his new business strategy, so he began looking for partners. This Wednesday, the streaming giant announced that has selected Microsoft as a global advertising technology and sales partner.
In this way, the Redmond company will help potential Netflix’s first ad-supported subscription offer, of which we still do not know its price or arrival date, but it is a fact. “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 to providing more options for consumers and a new experience of brand for advertisers.
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Netflix and Microsoft will work together
Before choosing Microsoft, Netflix had held talks with several companies, including Google, one of the most relevant players in the online advertising sector, Magnite, the largest advertising platform in the world, and FreeWheel, a company belonging to the giant of US telecommunications Comcast. “Each one has different solutions,” Netflix co-executive director Ted Sarandos had assured, so they had to identify which one fit their new strategy, and this has finally been the Redmond company.
The streaming company, which for a long time saw its number of users grow every quarter, has experienced this year the largest loss of subscribers in a decade and the pressure of the sector with increasingly aggressive competition, which not only invests in the construction of increasingly attractive content catalogues, but also plays at lowering the price of subscriptions with alternatives with ads, as Hulu and HBO Max have already done in the United States.
But this big shift in Netflix strategy isn’t just about ads. According to Deadline, it would also be exploring offering a live content streaming option. Likewise, it has previously confirmed that it is working to end the practice of sharing passwords outside the home, while preparing new original series, films and documentaries and places one foot in the world of mobile video games with titles like ‘Lady’s Gambit’ and ‘La Casa de Papel’.
Pictures | Netflix