Netflix announced the decision in April after failing financial results in the first quarter in which it saw its first drop in subscribers in a decade.
“Obviously it works on Hulu,” Netflix CEO Reed Hastings said in a conference call with analysts. He noted that the new subscription formula will see the light of day in a year or two.
“If you want an ad -free subscription format, that’s still possible,” Hastings explains. But if you prefer to pay less and watch ads without any problem, there is also a suitable offer for you.
This subscription is in addition to the three formats already available in the United States, the cheapest of which costs ten dollars per month in the United States.
Microsoft will develop and host a platform for advertisers who want to serve targeted ads to Netflix users.
“Microsoft has proven its ability to meet all of our advertising needs by developing an ad -supported subscription format with us,” Greg Peters, Netflix’s chief operating officer, said in statements cited on a platform. statement yesterday. in the future, whether in terms of technology or methods of sale, and ensuring that the privacy of our users is well protected. ”
According to the U.S. trade press, Netflix is reviewing partnerships with other partners, including Google, the world’s leading advertising company, and Comcast, the ISP that owns Peacock. NBC Universal platform.
But Microsoft’s strength is that it doesn’t have a competing streaming platform, unlike the three companies that provide two-thirds of the U.S. digital advertising budget: Google, Meta and Amazon.
E-Marketer analyst Ross Pines told AFP that Microsoft, headquartered in the northwestern U.S. city of Redmond, is “fourth” in the U.S. e-advertising market. interest in Netflix compared to other companies, as well as relationships with a wide range of advertisers. ”
He also pointed out that “this contract fills a gap (with Microsoft) in its promotional activities, which is quality live video content with huge growth potential.”
Source: Al-Akhbar
