Netflix and Microsoft collaboration
15 July 2022
After a poor first quarter in which it lost customers for the first time in a decade and after years of hostility to the very idea of showing advertising, Netflix decided to establish the less priced option. This decision came after years of opposition to the very idea of showing commercials.
There are currently three membership options available, the least expensive of which costs $10 a month in the United States. An additional membership option that is supported by advertisements will be added in the near future.
The platform that marketers will use to send adverts to Netflix and Microsoft will be created and managed by Microsoft, which will also be responsible for overseeing its operation.
Microsoft claims that advertisers “will receive access to the Netflix audience and premium connected TV material” as a result of this partnership.
As a result of the introduction of advertisements, Netflix will be subject to a number of difficult concerns, such as debates regarding the extensive collection of personal data pertaining to customers for the aim of providing those customers with more lucrative and tailored offers.
Analysts were not shocked by Netflix and Microsoft collaboration because the company has less potential conflicts of interest with Microsoft compared to other firms.
Netflix is no longer available to users in Russia.
According to Ross Benes, an analyst, Microsoft has not supported competing streaming programs, in contrast to the main three ad suppliers Google, Meta, and Amazon.
In the first three months of 2022, Netflix saw a decrease of 200,000 users globally when compared to the number of users it had at the end of 2021. This resulted in a precipitous drop in the price of the company’s shares.
As a response to this, the company that dominates the streaming industry made the announcement that it will be adding advertisements to its platform with the purpose of generating revenue to pay for the expenses necessary to maintain its position as the market leader it built.
It is possible for a large number of people to view Netflix video without paying by trading logins and passwords; nevertheless, Netflix has stated that it will take action to combat this practice.
