Netflix: many rivals and less value in its turn to advertising with Microsoft

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Netflix will turn to Microsoft to shape its new ad-supported subscription plan, an amendment to the streaming giant's business policy to date.

"Microsoft has the proven ability to meet all of our advertising needs as we work together to create a new ad-supported offering," Chief Product and Operations Officer

announced today .

For his part,

, president of Microsoft Web Experiences, stressed that “all ads published on Netflix will be available exclusively through the Microsoft platform” and guaranteed “more options for consumers and a premium television brand experience. better than linear for advertisers."

This strategy arises in Netflix when the main driver of the global audiovisual market has run into extensive competition in homes around the planet - in Spain the American brands HBOMax, Amazon Prime Video, Disney +, Apple TV +, or AMC +, for example, also converge. example-.

With this rivalry, in the first quarter of this year

, around 200,000 fewer subscribers.

Already in this second quarter, the company has shed around 450 employees, in two batches.

Since the start of 2022, the company has lost around 70% of its mammoth market capitalization.

Something happens.

The new Netflix rate would coexist with the current plans without advertising, which in Spain today are the basic (7.99 euros), the standard (12.99 euros) and the premium (14.99 euros).

Reed Hastings

, founder of the company and currently co-CEO of the platform, was the first to admit that in order to offer cheaper modalities, they managed "a short-term solution".

Last month, those ads ended up crystallizing with a proposal to attract new customers with lower prices, an experience that would include advertising but "more integrated and less interruptive" than the traditional linear television, in the words of

, responsible of Contents and coCEO of the technology company together with Hastings.

The boom in technology companies in a pandemic and during the beginning of the new normality has found a clear turning point, in which the generalized economic slowdown, the higher cost of living due to inflation and a monetary policy of increases in interest rates that play against companies based on investment, growth and also debt, see Netflix.

The contraction of the figures of this company can be extended to other illustrious representatives of the Big Tech. This same week,

, a "strategic readjustment" according to the terms of the firm based in Redmond, which has a workforce of around 180,000 employees.

In Meta (the old Facebook) hiring will be moderated, as in Google's parent company (Alphabet), which has admitted that the staff additions will not be as planned: "Due to the hiring progress achieved so far of the year, we will be slowing down the pace of hiring for the rest of 2022," Alphabet told the US Securities Market Commission, the SEC.

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