- Microsoft earns the Netflix contract and is now the technology and sales partner for its new ad-supported streaming service.
- Microsoft beats Comcast and Google thanks to its takeover of AT&T’s Xandr programmatic advertising platform.
- For the deal, Microsoft provided the members of Netflix with strong privacy protections and the freedom to continuously develop on the technical and sales sides.
- Although Microsoft isn’t as widely recognized as other firms for its video ad capabilities, it has the capacity to fulfill all advertising requirements as a team works to develop a new ad-supported solution.
The largest advertising award of the year goes to Microsoft’s cooperation with Netflix, beating the tough competition like Google and NBCUniversal parent Comcast. Microsoft is the new technology and sales partner for the new ad-supported streaming service of Netflix, the companies announced last Wednesday.
DVD sales and rentals were part of Netflix’s original business plan, however, Hastings stopped DVD sales approximately a year after Netflix’s launch to concentrate on the DVD rental by mail industry. While keeping its DVD and Blu-ray rental service, Netflix expanded its operations into streaming media in 2007. The company Thereon moved abroad and kept expanding its streaming service in more than 190 nations. Now, Netflix made a total of $7.87 billion in revenue during the first quarter of 2022.
Netflix has not yet announced the price for the ad-supported option. With slow revenue growth and a decline in the number of subscribers, CEO Reed Hastings revealed the plan for ads in April. Currently, the US price range for Netflix is $9.99 to $19.99 per month and ₹149 to ₹649 in India.
Microsoft doesn’t really have a video streaming service that can compete with Netflix for TV advertisements, except Google with YouTube and Comcast with Peacock and Xumo. Additionally, it might support Netflix in achieving its goals for video games given its previous actions in the industry. For many years, Microsoft has placed advertisements on Bing and its previous versions. “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,” The Wall Street Journal quoted.
Netflix And Microsoft Have Much Work To Do Ahead
“All ads served on Netflix will be exclusively available through the Microsoft platform,” Microsoft stated in a news release. The choice of Netflix “endorses Microsoft’s approach to privacy, which is built on protecting customers’ information,” it was further added. Although the firm recently informed staff that it aims to offer the ad-supported tier by the end of this year, Netflix stated it is still “very early days and we have a lot to work through” before doing so.
“Thrilled to be named Netflix’s technology and sales partner” to support the streamer’s first ad-supported offering,” said Mikhail Parakhin, president of Web Experiences at Microsoft. “All ads served on Netflix will be exclusively available through the Microsoft platform” and “this is a big day for Netflix and Microsoft. We’re excited to offer new premium value to our ecosystem of marketers and partners while helping Netflix deliver more choice to their customers,” he added.
In search of fresh development opportunities, Netflix, a longtime opponent of an SVOD-only business model, is pushing into the ad-supported market. The company is dealing with high subscriber coverage and problems with password and account sharing among many families. We are yet to see the amazing work of this famous partnership of recent times.