The companies announced Microsoft will be Netflix’s global advertising technology and sales partner for the new AVOD tier.

At the end of last month, Netflix officially announced that it was working on an AVOD version of its platform, which would come as a complement to its traditional subscription version.

And this week, the platform announced it has signed an agreement with Microsoft to be its technology and sales partner for the new modality.

“In April we announced that we will introduce a new lower priced ad-supported subscription plan for consumers, in addition to our existing ads-free basic, standard and premium plans. Today we are pleased to announce that we have selected Microsoft as our global advertising technology and sales partner”, Netflix COO, Greg Peters, said in a blog post.

“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”, he added.

“We’re thrilled to be named Netflix’s technology and sales partner to help power their first ad-supported subscription offering”, said Mikhail Parakhin, President Web Experiences, Microsoft.

“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. Today’s announcement also endorses Microsoft’s approach to privacy, which is built on protecting customers’ information”, he added.

The company has also reportedly started to negotiate with Hollywood Studios such as Warner Bros. Universal and Sony Pictures Television to get permission to include advertising in their titles.

The new AVOD version of Netflix could be launched before the end of this year.