Netflix and Microsoft partnered to roll out an ad-supported tier. After years of resisting the move, the streaming service decided to add commercials. Greg Peters, Netflix COO, said the company still had “much to work through” before introducing the new subscription level to its 221.6 million members globally, reported CNN Business.
Peters continued that Microsoft’s impressive ad sales division will be the driving force behind bringing the new tier to life. “‘Microsoft offered the flexibility to innovate’ in both technology and sales, as well as pledged strong privacy protections for Netflix members.”
Streaming services allowed consumers the opportunity to cut ties with traditional cable TV. The promise of commercial-free television appealed to millions willing to pay for convenience.
Netflix joins other subscription-based entertainment services that chose to boost their membership with an ad-supported tier: HBO MAX, Amazon Prime, and Disney+.
According to The New York Times, HBO began to show ads last summer and reported that they are equal between its commercial version and its ad-free tier. Hulu started with ads in 2007 and added its commercial-free tier in 2015.
Written by Cathy Milne-Ware
CNBC: Netflix partners with Microsoft on ad-supported subscription plan; by Jessica Bersztynsky
The News York Times: And Now, a Word From Your Streaming Sponsor; by John Koblin and Tiffany Hsu
The Hill: Ads are coming to a Netflix subscription plan: Here’s what we know; by Addy Bink
CNN Business: Netflix with ads is coming; by Frank Pallotta