Netflix's new lower-cost ad subscription will use Microsoft's adtech

Netflix is moving forward with its plan for a lower-cost, ad-supported subscription tier and has teamed up with Microsoft to make it happen.

Today Netflix announced that it has partnered with Microsoft as its global advertising partner for its new advertisement subscription model. Completely new to the world of advertisements, Netflix has chosen to team up with Microsoft due to the company's massive reach and its ever-growing ad platform (Microsoft purchased adtech specialists Xandr from AT&T in 2021).

Microsoft makes billions every year from its lucrative and powerful adtech platform, which Netflix will use to beam ads to its 221 million subscribers across the world. Netflix has not divulged further details of pricing, availability, or launch dates of its new ad subscription tier.

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.

It's very early days and we have much to work through. But our long term goal is clear. More choice for consumers and a premium, better-than-linear TV brand experience for advertisers. We're excited to work with Microsoft as we bring this new service to life.