Netflix is partnering with Microsoft to become its global advertising technology and sales partner to help power its first Ads-supported subscription offering.
The streaming company announced this in its blog post on Wednesday stating that Microsoft has the proven capacity to support all its advertising needs.
Netflix also added that Microsoft has delivered the flexibility to innovate over time on both its technology and sales side, as well as strong privacy protections for its members.
In addition, Microsoft in its blog post added that they will be working with marketers to bring ads to the Netflix ecosystem. Adding that all Ads served on Netflix will be exclusively available through its platform.
According to Mikhail Parakhin, Microsoft’s president of web experiences, said: “Today’s announcement also endorses Microsoft’s approach to privacy, which is built on protecting customers’ information.”
In May, Netflix first indicated a cheaper, ad-supported tier and later confirmed the possibility last month.
Although Netflix hasn’t declared openly an official date for the tier’s rollout, it’s rumored to become available to customers by the end of 2022.
The news of Netflix’s ad-supported plan originated after the company disclosed a drop in subscribers for the first time in a decade last quarter, topping out at 222 million globally.
The company is also analyzing its live streaming and ways to clamp down on password-sharing to help mitigate a decrease in its subscribers and earnings.