Business in crisis: Netflix partners with Microsoft to put ads on its platform

The company’s goal is to launch a new subscription tier to attract an audience that doesn’t want to pay much per month.

July 14 202216.41

Netflix business continues to decline. Month after month, his situation is becoming increasingly precarious due to the arrival of tough competition such as HBO Max, Prime Video, Disney+ or Apple TV+, among other platforms.

In the first quarter of the year, The company recorded a loss of 200,000 subscriberswhen Wall Street analysts predicted an increase of more than 2.5 million users.


Now, to try to increase its customer base and attract the attention of those who don’t want to pay, Netflix has announced that It chose Microsoft as its partner for its new economic level with ads.

Microsoft has a proven ability to meet all of our needs as we build a new ad-supported offering.expression Greg PetersCEO of Netflix.

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Most importantly, Microsoft has offered the flexibility to innovate over time on the technology and sales sides, as well as strong privacy protections for our members.he added.

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In addition to those mentioned by the CEO, another reason why Netflix chose Microsoft as its partner is that Bill Gates does not have a streaming service that competes directly.

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Until a few months ago, the streaming giant was in dialogue with Google and Comcast, but the first brand has YouTube, while the second has Peacock.

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after the announcement Netflix shares fell another 1.5%. Thus, they are building up a decline of 71% so far this year and 75% since the historic maximum reached in November 2021.

Terry Alexander

"Award-winning music trailblazer. Gamer. Lifelong alcohol enthusiast. Thinker. Passionate analyst."

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