Netflix partners with Microsoft on an ad-supported subscription plan.
“Microsoft has the proven ability to meet all of our needs as we build a new ad-supported offering together. More importantly, Microsoft offered the flexibility to innovate over time on both the technology and sales sides, as well as strong privacy protections for our members,” Netflix COO Greg Peters said in a statement. a statement.
The “Stranger Things” streamer, which has been struggling to retain and add subscribers, announced in April that it planned to implement an ad-supported level after years of resisting the move.
Co-CEO Reed Hastings has long opposed adding commercials or other promotions to the platform, but said during the company’s pre-recorded earnings conference call that “it makes a lot of sense” to offer customers a cheaper option.
The offer has great earning potential for Netflix as it works to sign up more users. In an effort to attract more subscribers, Netflix has increased its spending on content, particularly originals. To pay for it, the company raised the prices of its service. Netflix said those price changes are helping to boost revenue but were partially responsible for the loss of 600,000 subscribers in the United States and Canada during the most recent quarter.
Netflix has been interviewing potential partners for the past few months, including Google and Comcast, as it prepares to release the level before the end of 2022.
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