Highlights:

  • Although Netflix hasn’t announced an official date for the tier’s rollout, it’s rumored to become available to customers by the end of 2022.
  • The Xbox 360 was the first console to include HD Netflix streaming software.

According to a statement released by Netflix, Microsoft will be a part of its forthcoming ad-supported streaming service. After launching the less expensive alternative, the streaming service claims that Microsoft will become its “global advertising technology and sales partner.”

“It’s still extremely early, and there are many issues to be resolved,” said Netflix COO Greg Peters in the post. “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.”

The firm claims that marketers would collaborate with Microsoft to introduce advertisements to the Netflix ecosystem.

Mikhail Parakhin, Microsoft’s head of web experiences, said, “Today’s announcement also supports Microsoft’s approach to privacy, which is built on protecting customers’ information.” Besides Netflix, Microsoft is also considering bringing advertisements to free-to-play Xbox games.

Netflix first suggested a cheaper, ad-supported tier in May, and it was confirmed last month. Although Netflix hasn’t announced 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 tier spread after the business disclosed a decline in members for the first time in a decade last quarter, peaking at 222 million globally. To help mitigate a drop in subscribers and revenue, the corporation is also looking into live streaming and ways to crack down on password-sharing.

Choosing Microsoft recalls the close relationship shared between the two companies for streaming product launches. The Xbox 360 was the first console to include HD Netflix streaming software. The original version of Watch Instantly streamed B-movies primarily used Microsoft’s Silverlight technology to serve video rather than the more popular Flash Player until HTML5 replaced it.