streaming giant Netflix has announced that it is bringing advertising to the platform in partnership with Microsoft. The company gave minor details about its plans, but has said that it will introduce a new plan in addition to the ad-free Basic, Standard and Premium plans that will show ads to users. Let us take a look at everything we know about Netflix’s plans to put ads on the platform.
In a blog post, Netflix has said that he has partnered with Microsoft As the “global advertising technology and sales partner”. The company says that Microsoft has the proven ability to support all of their advertising needs as the two companies work together to create a new ad-supported offering. “More importantly, Microsoft continues to innovate over time in both the technology and sales sides, as well as offer stronger privacy protections for our members,” Netflix said. While Netflix says the plans are in the very early days, let us take a look at everything you need to know about commercials on Netflix.
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Why is Netflix bringing ads to its platform?
Netflix’s announcement comes after the company reported a drop in subscribers last quarter. With this, Netflix is making more efforts to gain new subscribers. To attract new subscribers, Netflix will bring a cheaper subscription plan, which will run ads, according to the company. Currently, the cheapest Netflix plan is Rs 149 per month, which gives users a “mobile” plan that plays 480p video on just one smartphone or tablet at a time.
Ads to bring in more money for Netflix
Given its close to 222 million user-base, Netflix has enough data to sell ads with ease. Partnering with Microsoft will also help the company develop advertising tools and sales. While advertisers will love the opportunity to advertise on Netflix, the new plan will also bring a new subscription, which could become more popular in countries like the US. India Where people don’t necessarily pay for premium membership.
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Netflix is also discouraging password sharing. The company had announced this year that it would charge a nominal fee from people who are sharing their passwords with their acquaintances. In March, Netflix launched a pilot in three countries (Peru, Costa Rica and Chile).
When are the ads expected to appear on Netflix?
Netflix said in its blog post that the new plan is still in the very early stages. Given that this is the first official announcement, we expect the new tier to roll out in the next few months. Netflix says it aims to give users more choices for advertisers and a better-than-linear TV brand experience.
What is Microsoft’s Role as a Partner
In another blog post, Microsoft said it is “thrilled to be named as Netflix’s technology and sales partner to help power their first ad-supported subscription offering.” The company says that all ads shown on Netflix will be available exclusively through the Microsoft platform. This means that marketers looking to Microsoft for their advertising needs will have access to Netflix audiences and premium connected TV inventory.
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