Credit: Microsoft

Netflix has selected Microsoft as the first of its announced advertising-tech partners for the cheaper, ad-supported Netflix subscription plan that's in the works. Microsoft beat out other potential partners, which reportedly included Google and Comcast, to win the deal. 

"Microsoft has the proven ability to support all our advertising needs as we work together to build a new ad-supported offering. 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," said Netflix Chief Operating Office and Chief Product Officer Greg Peters in a July 13 statement announcing the deal.

Peters said there's still "much to work through" before launching the ad-supported service.

In Microsoft's blog post about the win, Mikhail Parakhin, president of Web Experiences, said: "At launch, consumers will have more options to access Netflix's award-winning content. Marketers looking to Microsoft for their advertising needs will have access to the Netflix audience and premium connected TV inventory. All ads served on Netflix will be exclusively available through the Microsoft platform."

Microsoft acquired Xandr, an ad marketplace that ties into connected TV, from AT&T at the end of 2021. Xandr has a tech platform that supported premium advertising, and included Xandr Invest, Monetize, Curate and Invest TV.

Microsoft's own ad-buying solution, the Microsoft Audience Network, which comprises its PromoteIQ retail-media solutions and Microsoft Customer Experience Platform for marketers, is the backbone of Microsoft's digital advertising platform.

Neither Microsoft nor Netflix disclosed a dollar amount for the new ad deal.

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