It seems like everything is aligning for Netflix's more affordable ad-supported tier, said to land later this year: Netflix revealed today that it's partnering with Microsoft as its "global advertising technology and sales partner" to assist the streaming service make money off advertisements.

As reported by Netflix Chief Operating Officer Greg Peters, "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."

This is a big day for Netflix and Microsoft," said Mikhail Parakhin, president of Web Experiences, Microsoft, in an official blog. "We are excited to bring new premium value to our ecosystem of marketers and partners while helping Netflix offer more choice to their customers".

Marketers who advertise on Microsoft will now reach the media house's 221.6 million-subscriber base. The tech firm raked in $10 billion in ad sales last year and is also famous for how it thinks about privacy and to protect its customers' information.

"Microsoft gave us flexibility to innovate over time on both the technology and sales sides, as well as strong privacy protections for our members," Peters further said.

Since privacy was something the company wanted to prioritize in its ad-supported tier, picking Microsoft seemed like the best for the streamer. During Netflix's earnings call, co-CEO Reed Hastings said, "The online market has advanced, and now, you don't have to incorporate all the information about people that you used to.

Another reason Netflix probably chose Microsoft is that the technology giant also boasts a substantial presence in the CTV space now, following the recent acquisition of digital video advertising service Xandr. With the deal with Microsoft, the streamer can quickly enter the ad space.

The announcement comes a day after Disney disclosed its adtech deal with The Trade Desk.

Disney+'s ad-supported tier is expected to be launched soon. Their announcement yesterday might thus mean that the advertisers will now target this family-friendly audience. The company gained 7.9 million subscribers in its second fiscal quarter.