Microsoft wins deal to serve ads on Netflix, beating Comcast and Google
Netflix has recruited Microsoft to give the publicizing innovation to the web-based feature’s arranged ad-supported tier, the organizations declared Wednesday. Comcast’s NBCUniversal auxiliary and Google were supposedly “top contenders” to serve ads on Netflix before Microsoft won the agreement.
Microsoft will be the “global advertising technology and sales partner” for the “new lower priced ad-supported subscription plan,” Netflix said Wednesday.
“Microsoft has the proven ability to support all our advertising needs as we work together to build a new ad-supported offering,” Netflix said. “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.” The ad-supported streaming subscription will be offered “in addition to our existing ads-free basic, standard and premium plans,” Netflix said.
Netflix likewise said it’s still “very early days and we have much to work through” prior to sending off the ad-supported tier, however the organization as of late told workers it intends to carry it out before the current year’s over. The plan for ads was reported in April by CEO Reed Hastings in the midst of easing back income development and a misfortune in supporters.
Netflix hasn’t said the amount it will charge for the ad-supported tier. Netflix costs in the US right now range from $9.99 to $19.99 per month.
Microsoft’s acquisition of AT&T division assisted it with winning plan
Microsoft gave its own public statement that said, “All ads served on Netflix will be exclusively available through the Microsoft platform.” Microsoft said Netflix’s choice “endorses Microsoft’s approach to privacy, which is built on protecting customers’ information.”
Microsoft has served ads on the Bing web search tool and its ancestors for a long time, however its capacity to get the Netflix contract was purportedly because of its acquisition of the automatic publicizing framework Xandr from AT&T. “It was the Xandr purchase that gave Microsoft the technology necessary to become a contender in the high-profile race to win the Netflix partnership, people familiar with the matter said,” The Wall Street Journal composed.
The decision of Microsoft “came as a surprise to some ad industry executives because Microsoft isn’t as well known for its video ad capabilities as other companies,” the WSJ composed.