By Sam Boughedda
Netflix (NASDAQ:NFLX) shares have risen 1.7% late Wednesday after the streaming giant announced it has selected Microsoft (NASDAQ:MSFT) as global advertising technology and sales partner for its ad-supported tier.
The company announced in April that it would introduce a new lower-priced ad-supported subscription plan for consumers. The plan is expected to be rolled out in the fourth quarter.
Reports last month revealed Netflix had held talks with potential partners, such as Comcast (NASDAQ:CMCSA) and Alphabet's Google (NASDAQ:GOOGL), about the ad technology and sales force it would need. They have also reportedly been interviewing for an executive to lead the creation of its ad-supported tier service.
Netflix said Microsoft has the "proven ability" to support all of its advertising needs as they work to build the new subscription plan.
"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," Netflix stated. "It’s very early days and we have much to work through. But our long term goal is clear. More choice for consumers and a premium, better-than-linear TV brand experience for advertisers. We’re excited to work with Microsoft as we bring this new service to life."