A Collaboration of Netflix and Microsoft for Advert Supported Cheaper Subscription Plan
Netflix has declared its partnership with Microsoft to launch a less expensive subscription plan with adverts in order to overcome the problem of slow growth and to attract new customers as well. Officially, Microsoft has become Netflix’s global advertising technology and sales partner. As per Netflix, the company has said that it would “offer the flexibility to innovate over time on each the technology as well as the sales side, an addition with strong privacy protections for our members”.
HIGHLIGHTS
- A partnership between Netflix and Microsoft is announced
- The streaming giant, Netflix had lost hundreds of subscribers
- Microsoft is about to offer its flexibility in innovation of technology and sales
Also Read: A warning by Microsoft for Android users about the billing fraud malware
In a blog post,
Microsoft has particularly declared that the company would provide its help to Netflix, so that it could power its initial ad-supported offering globally. Once the plan is launched, the users would be able to get the award-winning content on the platform. According to an official statement by Microsoft, “All ads served on Netflix would be completely available through the Microsoft platform. Today’s announcement endorses Microsoft’s approach to privacy, which is constructed for protecting the customers’ data.”
Well, the shares of Netflix have gained 1.2 per cent to $176.56 at the close of trading in New York. This year the stock is down by 71 per cent, following the company’s prediction for a loss of two million subscribers within the just-ended second quarter. Along with this, the Microsoft shares have also closed down by 0.37 per cent at $252.72.
This year, Netflix has witnessed a huge dip within the subscriber’s count and in revenue. Due to such situation the company had to terminate 300 employees. In order to rectify such situation, Netflix had given a hint back in May that it would roll out a less expensive ad-based subscription plan for their users. The expected time for this tier to roll out is somewhat by the end of this year.
Netflix had always remained tight-lipped about the details of this subscription plan. Well, the company has even confirmed that soon it is going to roll out a feature where the users are going to be charged for sharing their Netflix account password apart from their household members. This feature has been tested already in certain parts of the world and is about to arrive in India soon.
It has been noticed that the price model of this feature has not been revealed yet.
Also Read: Netflix 'Never Say Never' To Advertisement, Says Netflix CFO Spencer Neumann.