Microsoft is now Netflix’s sales and advertising technology partner for the entire world. The only way to access any of the advertisements displayed on Netflix will be through the Microsoft platform.
As a result of record-breaking subscriber losses, Netflix said in April that, in addition to its currently available ads-free basic, standard, and premium plans, it would also be offering new, more affordable, ad-supported subscriptions. Netflix has now chosen Microsoft as its international advertising technology and sales partner for the same. The only way to access any of the advertisements displayed on Netflix will be through the Microsoft platform.
Greg Peters, Chief Operating Officer and Chief Product Officer at Netflix said, “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.”
Mikhail Parakhin, President Web Experiences, Microsoft said in a blog post, “We’re thrilled to be named Netflix’s technology and sales partner to help power their first ad-supported subscription offering. At launch, consumers will have more options to access award-winning Netflix content. Today’s announcement also endorses Microsoft’s approach to privacy, which is built on protecting customers’ information.”
The Netflix audience and exclusive linked TV inventory will be available to marketers who turn to Microsoft for their advertising requirements.
Reed Hastings, co-CEO of Netflix, has long resisted adverts and other forms of advertising on the service, but in April he conceded that embedding advertisements provided users with more affordable choices.
Due to the intense competition and low prices, India has proven to be a difficult market for Netflix since it entered the market there. Indian consumers favour OTT services like Disney+Hotstar, Amazon Prime Video, Sony LiV, and ZEE5 because of the variety of content they offer and the comparably reasonable subscription prices.
For instance, Disney Hotstar annual plan is available for Rs 1,499 per year whereas Netflix only has monthly plans with HD streaming for Rs 499 per month, and 4k+ HDR at Rs 649 per month. There are cheaper plans available as well, such as Rs 149 per month only for mobiles and tablets and screens costing Rs 199 per month plan available in SD (480p) quality. Secondly, the competition along with regional OTT platforms has been constantly coming up with exciting regional content like Family Man on Prime Video, Gullak on Sony Liv, and Special Ops on Hotstar to name a few. Netflix too has been experimenting but the content strategy seems to be lacking behind.
