No one seems to be particularly happy these past few days with the Netflix, with what the company plans to implement in collaboration with Microsoft
Πdue to the continued success of television series such as Stranger Things, overall 2021 has been a tough year for the streaming pioneer, but even now the company is still struggling with its shrinking customer base and declining stock value.
So in response to its first decline in subscribers in more than a decade, Netflix today announced plans to roll out a cheaper ad-supported subscription plan.
This is something that its competitors already offer, but Netflix has long avoided moving in this direction. But that all changes with today's announcement from the company, as Netflix announced its advertising partner in an effort to win back new subscribers, and the name of Netflix's new partner is familiar to most.
Η Microsoft so she'll be the one to join Netflix's new ad-supported subscription package. According to today's announcement of COO Greg PetersThe Microsoft is not only ready to provide the necessary ads in this new low-cost subscription package, but as it states itself, it is ready to bring some innovations to ads and streaming games, while offering the much-needed "privacy protection» for Netflix subscribers. On her part, Microsoft says that any advertising that will be shown to Netflix subscribers will be done exclusively through its platform, with no other "hidden" partners who will promote sales or take advantage of subscribers' personal data.
We're thrilled Netflix has selected Microsoft as its advertising technology and sales partner. We want publishers to have more long-term viable ad monetization platforms, so more people can access the content they love wherever they are. https://t.co/QmPszxJTOf
- Satya Nadella (@satyanadella) July 13, 2022
Such an interesting deal is sure to lead to a lot of speculation and suspicion, especially when the new advertising plan that Netflix will bring to its subscribers is implemented.
And while it's natural to expect an emphasis on ad sales and privacy protection, Microsoft's emphasis on ad innovation is an interesting approach.
Some may be more familiar with streaming ads found on other content streaming services such as on Hulu and other competing services, but it remains to be seen how ads will play out on Netflix. We will likely be dealing with the introduction of some commercial breaks either directly — especially when the material being shown was originally created for broadcast television where commercial breaks are common — or by choosing specific points in the films where commercials will appear in a black box without to interrupt the flow of the program at all.
Despite all this, as stated by o Peters, the Netflix is still in the early stages of working out how this new service – subscription package with ads will be implemented, and there is no clear start date for the new subscription package yet. However, the rumors that are circulating indicate that something like this is expected to happen before the end of the year.
If we consider that the 30% of respondents who took part in the recent poll that did the Android Police, were considering canceling their subscription altogether – especially if the cheaper subscription plans can't be made available soon enough, then it's certain that Netflix will have to move very quickly to announce the new service to stop the bleeding on its subscriptions base.
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