Netflix to Launch an Ad-Supported Plan with a Little Support from Microsoft

Would you like to pay less for your Netflix 4K subscription? Well, it’s possible if they introduce ads; though the experience will be more TV-like, you’ll still get the content for less. The partner Netflix chooses to implement this plan is suddenly not Google or Facebook, but Microsoft. The reason lies a bit beyond Microsoft’s indisputable expertise.

What does Netflix need to start an ad-supported plan? First, it needs advertisers to pay it for its airtime. Second, it needs to make ads relevant like we have gotten used to with social media and search systems. Microsoft doesn’t seem to succeed in both domains as much as other giants do. Yet it still has enough expertise to provide technical support.

It’s time to remember that the success of Netflix is also about its ability to build personal recommendations for each viewer based on their preferences. Why not apply the same approach to ads, given the large amounts of data the streaming giant already has on every one of its subscribers? It can succeed with it if there is stable working support behind it. And that’s what Microsoft is great at, as well as privacy protection which was also emphasized by Netflix spokespersons.

And… unlike Google, it does not have its own rivaling streaming service. Not that it would stop Microsoft from such a partnership: the Richmond company well collaborates with Sony, despite the rivalry between Xbox and PlayStation. But Netflix might just not approach it at all. Now, though, there is a rare example of pure collaboration.

In recent quarters, Netflix may have lost up to 2 million subscribers. This is probably the first reason why the company thinks of making budget-friendlier plans and searching for alternative income sources. If it comes up with a product that satisfies both subscribers and advertisers, it may be the way out.

Would you buy an ad-supported subscription? How much advertising would you tolerate during your binges? Let’s talk about this in the comments before you proceed to the next episode!