Microsoft wins deal to serve adverts on Netflix, edging out Comcast and Google

Netflix has employed Microsoft to supply the promoting expertise for the streaming service’s deliberate ad-supported tier, the businesses introduced Wednesday. Comcast’s NBCUniversal subsidiary and Google have been reportedly “high contenders” to serve adverts on Netflix earlier than Microsoft gained the contract.

Microsoft would be the “international promoting expertise and gross sales accomplice” for the “new decrease priced ad-supported subscription plan,” Netflix mentioned Wednesday.

“Microsoft has the confirmed means to assist all our promoting wants as we work collectively to construct a brand new ad-supported providing,” Netflix mentioned. “Extra importantly, Microsoft supplied the flexibleness to innovate over time on each the expertise and gross sales aspect, in addition to robust privateness protections for our members.” The ad-supported streaming subscription will probably be supplied “along with our current ads-free primary, commonplace and premium plans,” Netflix mentioned.

Netflix additionally mentioned it is nonetheless “very early days and we’ve a lot to work by” earlier than launching the ad-supported tier, although the corporate just lately instructed staff it plans to roll it out by the top of this 12 months. The plan for adverts was introduced in April by CEO Reed Hastings amid slowing income progress and a loss in subscribers.

Netflix hasn’t mentioned how a lot it’ll cost for the ad-supported tier. Netflix costs within the US at the moment vary from $9.99 to $19.99 a month.

Microsoft’s buy of AT&T division helped it win deal

Microsoft issued its personal press launch that mentioned, “All adverts served on Netflix will probably be solely accessible by the Microsoft platform.” Microsoft mentioned Netflix’s selection “endorses Microsoft’s method to privateness, which is constructed on defending prospects’ info.”

Microsoft has served adverts on the Bing search engine and its predecessors for a few years, however its means to get the Netflix contract was reportedly resulting from its buy of the programmatic promoting system Xandr from AT&T. “It was the Xandr buy that gave Microsoft the expertise essential to develop into a contender within the high-profile race to win the Netflix partnership, individuals acquainted with the matter mentioned,” The Wall Road Journal wrote.

The selection of Microsoft “got here as a shock to some advert business executives as a result of Microsoft is not as well-known for its video advert capabilities as different corporations,” the WSJ wrote.