Losing subscribers like never before, Netflix shared its plans in April to introduce new lower-priced ad-supported subscriptions for consumers, in addition to the existing ads-free basic, standard and premium plans. For the same, Netflix has now partnered with Microsoft as its global advertising technology and sales partner. All ads served on Netflix will be exclusively available 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.”
While not many details have been revealed at the moment, Peters added that the plan is at its very early days and there is much to work through. But the long term goal is clear - more choice for consumers and a premium, better-than-linear TV brand experience for advertisers.
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.”
Marketers looking to Microsoft for their advertising needs will have access to the Netflix audience and premium connected TV inventory.
Netflix Co-CEO Reed Hastings, for long, opposed having commercials and other promotions on the platform but in April acknowledged offering cheaper options by embedding advertisements.
Since Netflix entered India, the country has proved to be a tough ground for the company due to the extreme competition and competitive pricing. OTT offerings like Disney+Hotstar, Amazon Prime Video, Sony LiV, and ZEE5 are preferred by Indian consumers for the bouquet of content they offer along with the comparatively affordable subscription plans. 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.
Netflix is expected to release quarterly earnings on July 19. The company had warned it could lose 2 million subscribers during the second quarter.
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