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Netflix Partnering With Microsoft for Ad-Supported Streaming Tier

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Netflix today announced that it plans to partner up with Microsoft for its planned ad-supported streaming tier, with Microsoft set to handle ad sales. Netflix says that Microsoft will be able to support all of its advertising needs for the new, more affordable streaming option.

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In April we announced that we will introduce a new lower priced ad-supported subscription plan for consumers, in addition to our existing ads-free basic, standard and premium plans. Today we are pleased to announce that we have selected Microsoft as our global advertising technology and sales partner.

Microsoft has the proven ability to support all our advertising needs as we work together to build a new ad-supported offering. More importantly, Microsoft offered the flexibility to innovate over time on both the technology and sales side, as well as strong privacy protections for our members.
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Netflix co-CEO Ted Sarandos confirmed in June that Netflix is planning to implement a cheaper ad-supported tier to draw in customers who do not want to pay the $9.99 per month starting price for an ad-free plan. At the time, Sarandos said that Netflix was in talks with ad-sales partners.

The Basic Netflix plan is priced at $9.99 and it offers 480p streaming, while the Standard plan is priced at $15.49 for 1080p resolution. Netflix's most expensive Premium plan, priced at $19.99 per month, is the sole tier that offers 4K HDR streaming. Netflix continues to be the only streaming service that charges extra for improved streaming quality, and the ad-supported tier will likely offer streaming quality similar to the Basic plan.

Though Netflix said in the past that it would not offer a more affordable tier with ads, the company's plans changed following its disappointing first quarter. Netflix lost subscribers for the first time in 10 years, with revenue growth slowing considerably. Netflix largely blamed the downturn on "a large number of households sharing accounts" and "competition."

An ad-supported tier could help Netflix tap customers that it is not able to reach at the current time, and Sarandos said that he believes Netflix will return to growth with the ad-based tier and the plan to more effectively monetize multi-household sharing through new restrictions that are being tested.

Netflix today said that it's "very early days" and there's "much to work through," but that its long term goal is to offer "more choice for consumers and a premium, better-than-linear TV brand experience for advertisers." Netflix is rumored to be aiming to launch its ad-supported tier before the end of 2022, perhaps in the last three months of the year.

Article Link: Netflix Partnering With Microsoft for Ad-Supported Streaming Tier
 
Article Link
https://www.macrumors.com/2022/07/13/netflix-microsoft-ad-supported-streaming-tier/
Now that Sir Jony is able to take non-Apple gigs, Netflix should have hired him to design its new subscription tier.

"Netflix announces pre-order availability for its thinnest, lightest streaming plan ever! We had the courage to remove all menus and buttons from the Netflix app on every platform while giving you the power to see unlimited ads. Get ready for an outrageously great way to view your favorite shows and movies!"
 
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TheYayAreaLiving 🎗 said:
Partnering with Microsoft will not do much. Netflix is money hungry. My membership with Netflix will stay canceled and not planning on going back to them any time soon.
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boy you have no idea

lemme remind you MS still owns the biggest share in PCs operating systems which lately has been turning into massive data collection software, combined with data from other apps, browsers included

they will be targeting ads in a way that will make Google execs turning red from jealousy
 
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Chrjy said:
480p, I didn’t even realise this was a thing on Netflix! Fancy charging money for such dire quality and then still charging, admittedly at a lower price, with ads at the same resolution. Crazy thinking.
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They are doing that because there is no real content and they have run out of ideas as far as content goes.
 
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Moonjumper said:
People wouldn't share accounts so much if they didn't need the multiple stream option to get the quality images. I just haven't bothered with Netflix for years. I'm not paying the 4 stream price, and I'm not paying for standard definition, and I cannot be bothered with sharing.
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Right? Forcing people to get 4 streams to get 4K in a single house hold just makes no freaking sense unless you end up sharing. Hell, offering different streaming quality solutions depending on your plan makes no sense in 2022. in fact, they are the only streamer with this kind of business „strategy“ as far as I know. Obviously it’s not working for them either
 
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Though Netflix said in the past that it would not offer a more affordable tier with ads, the company's plans changed following its disappointing first quarter. Netflix lost subscribers for the first time in 10 years, with revenue growth slowing considerably. Netflix largely blamed the downturn on "a large number of households sharing accounts" and "competition."
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I'm curious to see what scheme they will try next if they continue to lose subscribers even with this ad-supported tier. I'm not sure adding ads is the answer.

And as others have said... I can't believe Netflix is still offering a 480p package in 2022. We've had affordable HDTVs for well over a decade. So HD streaming should be the minimum.

The article says this new ad-supported tier will be priced below the $10/month Basic plan... the 480p plan.

So people will have ads... and have low-resolution content?

Again... I'm not sure this will help them gain subscribers.
 
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AppleFan735 said:
Imagine paying $10 a month for the privilege to stream in 480p.
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Step back only a little hop in time and people paid more than $100/month to try to get up towards 480p quality... and were proud of it. The days of analog cable are not that far behind us. There's STILL some of those kinds of channels broadcasting. And see subchannel over the air for more of the same via antenna.
 
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