Netflix partners with Microsoft for cheaper ad-supported subscriptions

Daniel Sims

Posts: 586   +21
Staff
What just happened? After months of speculation, Netflix recently confirmed plans for a cheaper ad-supported tier, but the company would need a partner to help deliver those ads. This week, it announced that it chose Microsoft. Most of Netflix's competitors already have ad-supported membership options.

Microsoft and Netflix have announced that advertisements for Netflix's upcoming cheaper ad-supported tier will all come through Microsoft's advertising platform. The companies' statements end a string of rumors surrounding Netflix's ad plans.

In April, Netflix confirmed plans to offer an ad-supported subscription sometime in 2022, reversing earlier statements against the idea. A first-quarter financial report showing the first loss of subscribers in a decade might have encouraged the decision, as the company laid off staff in response.

Previous reports speculated that Netflix might work with Google or NBCUniversal to deliver ads or that it could even purchase Roku to accelerate those plans. Adopting an ad-supported tier would bring Netflix in line with competitors including Hulu, HBO Max, Paramount Plus, and Peacock, with Disney+ also embracing the trend this year.

This week's announcements don't reveal details on what Netflix's ad-supported tier might look like, when it will launch, or how much it would cost. Netflix currently starts at $10 a month. HBO has similar pricing with ads, and Disney+ is $8 without ads. Netflix's ad-supported price would need to compete with Hulu's $7 ad tier and Paramount Plus's $5 ad tier.

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Tom Yum

Posts: 182   +438
Prediction

2023: Netflix introduces requirement to link Netflix account with Microsoft account, no free tier without Microsoft sign-on
Late 2023: Netflix continues to increase ads on free tier until subscriber numbers drop.
2024: Netflix introduces 'limited' ads to paid tiers. Requires MS sign-on for all Netflix accounts.
2025: Netflix is bought by MS
 

ypsylon

Posts: 525   +544
What could possibly go wrong with this partnership...?

World is literally disintegrates before our eyes. Ads everywhere, permanent surveillance, phones by subscription, cars by subscription. When we'll have to subscribe somewhere just to be allowed to breathe?

Tom Yum, spot on. Netflix - as a platform agnostic software - is even better data miner than everything Microsoft make.
 

George Keech

Posts: 250   +431
If YouTube has becoming soooooo annoying with its huge number of ads run, I can´t imagine how unbearable Netflix would turn into. Yikes! I hate ads
I Would hope not as bad because you would think there is so much less for Netflix to do. They don't have to monitor content, moderate it and they know exactly what is on there platform and nothing can get there without them knowing etc. Advertisers know what they are getting - eg put a comedy ad in the middle of this comedy show.
 

Hexic

Posts: 1,245   +1,952
TechSpot Elite
I pay a subscription fee for a service for a reason - no ads, no BS, just the content I want. When I begin paying for the 'priviledge' of watching ads... Time to skip out and hoist the sails like the old days.

That's why I've never had a Hulu subscription I've paid for - the concept of getting bent over two-fold is insulting.
 

Vanderlinde

Posts: 156   +104
I pay a subscription fee for a service for a reason - no ads, no BS, just the content I want. When I begin paying for the 'priviledge' of watching ads... Time to skip out and hoist the sails like the old days.

That's why I've never had a Hulu subscription I've paid for - the concept of getting bent over two-fold is insulting.


Yes, and you still can. It's just a cheaper netflix version with ad-support.

 

Hexic

Posts: 1,245   +1,952
TechSpot Elite
Yes, and you still can. It's just a cheaper netflix version with ad-support.
The fact that they have the option is irrelevant to the entire concept of why.

I don't care if they have a more expensive plan to be free of ads (I.e. Hulu) - the fact that they don't have the decency to offer the 'all or nothing' concept tells all.

Also, do you really think that if they instantiate this new 2-plan system and it does well, they won't build onto this more? Maybe a third tier (Hulu), lackadaisically jack up prices on the 'Premium' plan price, while keeping the lower plan price, and use the excuse of, "Well, anyone who doesn't want to pay this price can still get a reduced price on our lower tier plans, but you're going to watch ads so we can still double dip on profits."

It happens every time. The best way to prevent getting bent over is to not give them money when they start this stupid s*it.
 

wiyosaya

Posts: 7,961   +7,006
Personally, I might tolerate some ads if they made every subscription tier available at a lower price for subscribers willing to watch ads.

If YouTube has becoming soooooo annoying with its huge number of ads run, I can´t imagine how unbearable Netflix would turn into. Yikes! I hate ads
Ublock Origin does an excellent job of blocking You Tube ads. :)

And I have found that services like Hulu leave their Mute button active during ads.
 

Carlos GarPov

Posts: 128   +85
Personally, I might tolerate some ads if they made every subscription tier available at a lower price for subscribers willing to watch ads.


Ublock Origin does an excellent job of blocking You Tube ads. :)

And I have found that services like Hulu leave their Mute button active during ads.
Thanks a lot, I'll download the app you're refering to.