Netflix Partnering With Microsoft for Ad-Supported Streaming Tier

Netflix today announced that it plans to partner up with Microsoft for its planned ad-supported streaming tier, with Microsoft set to handle ad sales. Netflix says that Microsoft will be able to support all of its advertising needs for the new, more affordable streaming option.

netflix 4

In April we announced that we will introduce a new lower priced ad-supported subscription plan for consumers, in addition to our existing ads-free basic, standard and premium plans. Today we are pleased to announce that we have selected Microsoft as our global advertising technology and sales partner.

Microsoft has the proven ability to support all our advertising needs as we work together to 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.

Netflix co-CEO Ted Sarandos confirmed in June that Netflix is planning to implement a cheaper ad-supported tier to draw in customers who do not want to pay the $9.99 per month starting price for an ad-free plan. At the time, Sarandos said that Netflix was in talks with ad-sales partners.

The Basic Netflix plan is priced at $9.99 and it offers 480p streaming, while the Standard plan is priced at $15.49 for 1080p resolution. Netflix's most expensive Premium plan, priced at $19.99 per month, is the sole tier that offers 4K HDR streaming. Netflix continues to be the only streaming service that charges extra for improved streaming quality, and the ad-supported tier will likely offer streaming quality similar to the Basic plan.

Though Netflix said in the past that it would not offer a more affordable tier with ads, the company's plans changed following its disappointing first quarter. Netflix lost subscribers for the first time in 10 years, with revenue growth slowing considerably. Netflix largely blamed the downturn on "a large number of households sharing accounts" and "competition."

An ad-supported tier could help Netflix tap customers that it is not able to reach at the current time, and Sarandos said that he believes Netflix will return to growth with the ad-based tier and the plan to more effectively monetize multi-household sharing through new restrictions that are being tested.

Netflix today said that it's "very early days" and there's "much to work through," but that its long term goal is to offer "more choice for consumers and a premium, better-than-linear TV brand experience for advertisers." Netflix is rumored to be aiming to launch its ad-supported tier before the end of 2022, perhaps in the last three months of the year.

Top Rated Comments

appleguy123 Avatar
21 months ago
If Netflix is going to segment by ads, they shouldn’t also segment by video resolution. Is this plan going to have 480p videos and 4K ads?
Score: 35 Votes (Like | Disagree)
AppleFan735 Avatar
21 months ago
Imagine paying $10 a month for the privilege to stream in 480p.
Score: 34 Votes (Like | Disagree)
TheYayAreaLiving ?️ Avatar
21 months ago
Partnering with Microsoft will not do much. Netflix is money hungry. My membership with Netflix will stay canceled and not planning on going back to them any time soon.
Score: 30 Votes (Like | Disagree)
york2600 Avatar
21 months ago
It's 2022 Netflix. Why are you still making 1080p a premium offering? You run your own CDN, you cheapskates.
Score: 28 Votes (Like | Disagree)
Piggie Avatar
21 months ago

People still watch/use/pay for Netflix?
Yes. 222 million of them actually.
Score: 21 Votes (Like | Disagree)
Spock Avatar
21 months ago

It's 2022 Netflix. Why are you still making 1080p a premium offering? You run your own CDN, you cheapskates.
They are the only streaming service as far as I know that charge a premium price for 4K.
Score: 16 Votes (Like | Disagree)

Popular Stories

Beyond iPhone 13 Better Blue Face ID Single Camera Hole

Six Reasons to Wait for Next Year's iPhone 17

Thursday February 22, 2024 4:20 am PST by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models concurrently, which is why we sometimes get rumored feature leaks so far ahead of launch. The iPhone 17 series is no different, and already we have some idea of what to expect from Apple's 2025 smartphone lineup. If you plan to skip...
iPhone Notch

Apple Explored These Notch and Dynamic Island Designs for iPhones

Friday February 23, 2024 2:05 pm PST by
With the iPhone 14 Pro models in 2022, Apple introduced the Dynamic Island, which can morph and expand to display system alerts, sports scores, and a variety of other information. The feature makes the space surrounding the front camera and Face ID sensors useful compared to the notch on older iPhone models. Apple explored a variety of ideas for the iPhone's notch area over the years before...
General Apps Messages

Apple Announces 'Groundbreaking' New Security Protocol for iMessage

Wednesday February 21, 2024 6:00 am PST by
Apple today announced a new post-quantum cryptographic protocol for iMessage called PQ3. Apple says this "groundbreaking" and "state-of-the-art" protocol provides "extensive defenses against even highly sophisticated quantum attacks." Apple believes the PQ3 protocol's protections "surpass those in all other widely deployed messaging apps," according to its blog post:Today we are announcing...
Next Generation CarPlay Porsche 1

Apple Launching Next-Generation CarPlay This Year With These New Features

Wednesday February 21, 2024 2:03 pm PST by
Apple recently updated its website to confirm that the first vehicle models with next-generation CarPlay support will debut "in 2024." This wording is shown on Apple's regional websites for the U.S., Canada, Australia, New Zealand, and many other countries. The iOS 17.4 beta includes code-level references to eight new CarPlay apps:Auto Settings: This app will let you manage paired iPhones...
General Apps Messages

iOS 17.4 to Add This 'Groundbreaking' New Messaging Feature

Friday February 23, 2024 5:05 am PST by
With iOS 17.4, set to arrive in March 2024, Apple is bringing a new cryptographic security feature to iMessage called PQ3. This "groundbreaking" and "state-of-the-art" protocol provides "extensive defenses against even highly sophisticated quantum attacks," according to Apple. Let's break down what that means. Apple's iMessage service already supports end-to-end encryption, but security...
cracked glass vision pro

Handful of Apple Vision Pro Units Develop Identical Crack in Cover Glass

Friday February 23, 2024 4:46 am PST by
A small number of Apple Vision Pro owners have claimed that their headsets developed a hairline crack down the middle of the front cover glass, despite having never been dropped or mishandled. Photo of hairline crack in Vision Pro front glass (credit: Reddit user Inphenite) The first report was posted in the subreddit /r/VisionPro about 18 days ago, and several more have appeared in the last...
iOS 17

iOS 17.4 Will Add These New Features to Your iPhone

Monday February 19, 2024 6:52 am PST by
Apple last month confirmed that iOS 17.4 will be released in March, and the update includes several new features and changes for the iPhone. Key new features in iOS 17.4 include major App Store changes in the EU and Apple Podcasts transcripts. The update also adds new emoji and includes preparations for the launch of next-generation CarPlay later this year. More details about the new...
New Macs iPads iOS 17 4

What to Expect at Potential Apple Event in March: iPads, Macs, and More

Friday February 23, 2024 8:35 am PST by
Apple often holds its first media event of the year in March, so the company could be just weeks away from announcing new products. Below, we have outlined what to expect from a potential Apple Event this March. Past Apple Events in March Apple has held five events in March since 2015:Monday, March 9, 2015 Monday, March 21, 2016 Tuesday, March 27, 2018 Monday, March 25, 2019 Tuesday,...