Netflix has partnered with Microsoft for an affordable and ad-supported subscription plan for select segments. Microsoft will act as Netflix’s advertising and sales partner in this scenario.
This subscription plan, which caused controversy among some segments, has been expected for a long time. Uncertain when it would activate this plan, Netflix broke its silence and came up with a sudden Microsoft agreement. Now, some questions are in mind; one is how this system will work.
With the prior agreement, brands that want to advertise on the platform will work with Microsoft. You will be able to watch the content in the same way as today, you will not be subject to any other restrictions or lack of content, but your viewing pleasure will be interrupted by advertisements at regular intervals. It is not known what the time limit will be between commercials.
Mihail Parakhin, president of Microsoft web experiences, has the following words on the subject:
“At launch, consumers will have more options to access Netflix’s award-winning content. Marketers looking to Microsoft for their advertising needs will have access to the Netflix audience and premium connected TV inventory. 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.”
It was not disclosed by which metrics these ads will be selected by either company. In today’s world, where personal data cases have increased so much, it is a matter of curiosity whether an advertising scale will be based on Netflix habits or common data from many browsers.
After Apple implemented the “App Tracking Transparency” (ATT), many advertisers using personal data started to shift from Apple to Android. In a scenario where this system will collect personal data, it seems possible to conflict with Apple.
Netflix COO Greg Peters said they are very excited about the partnership with Microsoft and added:
“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.”
Netflix has been making breakthroughs in the game industry for over a year. Adding four new games to its library in May, Netflix’s total game downloads exceeded 13 million in 1 year. Whether this subscription plan will include games is yet to be announced.
