Netflix is partnering with Microsoft to launch ad-supported subscriptions, the company announced Wednesday. Microsoft will be Netflix's global ad-tech and sales partner, according to Netflix's chief operating and chief product officer, Greg Peters.
"Microsoft offered the flexibility to innovate over time on both the technology and sales side, as well as strong privacy protections for our members," Peters said in the announcement.
Netflix first announced plans to launch a cheaper, ad-supported tier earlier this year. The company has yet to release details about the offering, but reports say the company has been looking to launch it before the end of the year. Netflix reportedly also talked to Comcast and Google about powering its advertising business.
Microsoft has been doubling down on its advertising business in recent months. The company announced the acquisition of TV ad tech specialist Xandr from AT&T in December; the deal ultimately closed in June. Microsoft's total ad revenue surpassed $10 billion in 2021.