While some advertisements are indeed creative and interesting, in general, most people just hate them.
But there is no denying that many industries are reliant on them. Ads are the lubes that make the gears turn. Without them, many industries will fall.
The same goes with streaming platforms, like Netflix.
While Netflix earns from users who subscribe to its subscription business model, the company is looking forward for having ad-supported subscriptions. A move that should help the company after losing subscribers from the first time in more than a decade.
To make this happen, Netflix is partnering with Microsoft.
The streaming platform has named Microsoft as its global advertising technology and sales partner.
According to Greg Peters, Netflix’s COO and CPO:
"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."
Gregs stressed that the partnership is meant to provide consumers with more options.
This is in line with what Netflix's co-CEO Ted Sarandos had said.
"We’re adding an ad tier for folks who say, 'Hey, I want a lower price and I’ll watch ads.'"
The partnership should be a win-win scenario for both companies.
First, the partnership allows Netflix to tap into Microsoft's huge network of advertising partners.
Second, Microsoft would have a substantial boost in ad revenue.
This is because marketers who wish to target the many Netflix users, should use Microsoft's platform, simply because all ads served on Netflix would be exclusive from Microsoft.
According to Microsoft on its own announcement:
