Microsoft announced Wednesday that it will run ad space selling technology on Netflix, the streaming giant that wants to offer cheaper subscriptions but with ads.
Netflix made the decision after a disappointing first quarter, losing subscribers for the first time in ten years.
“It’s clearly working for Hulu,” Netflix president Reed Hastings, referring to a rival service, said during a conference call with analysts, specifying that a new format should see the light of day here. a year or two.
“If you want the ad-free option, it will always be possible. If you’d rather pay less and be tolerant of ads, there will be an offer for you too.”
This subscription will be added to the three options already available (“Basic”, “Standard” and “Premium”), the cheapest of which is ten dollars per month in the US.
Microsoft will be responsible for designing and managing the platform for advertisers who want to display ads to Netflix users.
“Microsoft has a proven ability to meet all of our advertising needs by creating a new ad-based subscription offering with us,” Greg Peters, COO of Netflix, said in a statement Wednesday.
“Most importantly, Microsoft gives us the ability to flexibly innovate in the future, both in the technology side and in sales technologies, and provides strong protections for the privacy of our subscribers,” he detailed.
