TheCable

Netflix, America’s streaming giant, says it is planning to introduce an ad-supported and cheaper subscription plan in partnership with Microsoft — a multinational tech corporation.

The companies announced this in separate statements on Wednesday.

During the first quarter of 2022, Netflix announced that it lost 200,000 subscribers — its first loss in a decade.

Netflix’s new offering is aimed at boosting subscription numbers but the company has not said how much it will charge subscribers for the service.

The streaming platform did not also disclose when the service would be launched.

Speaking on the development, Greg Peters, chief operating officer of Netflix, said, with the new plan, the company offers more choice for consumers and a premium, “TV brand experience for advertisers”.

“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,” Peters said.

“Today we are pleased to announce that we have selected Microsoft as our global advertising technology and sales partner.

“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.

“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.”

On his part, Mikhail Parakhin, president, web experiences at Microsoft, said the company was thrilled to partner with Netflix.

He said consumers will have more options to access Netflix’s award-winning content when it is launched.

“Marketers looking to Microsoft for their advertising needs will have access to the Netflix audience and premium connected TV inventory,” Parakhin said.

“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.

“This is a big day for Netflix and Microsoft. We’re excited to offer new premium value to our ecosystem of marketers and partners while helping Netflix deliver more choice to their customers.”