Streaming company, Netflix, and technology firm, Microsoft, have signed an agreement to offer cheaper subscription plan that comes with advert, as the movie streamer restrategises amid loss of subscribers.
Netflix had reported that 200,000 subscribers ended their subscription plan with the streamer in Q1 2022, causing a heavy loss to the company, and resulting to investors dumping their shares on the exchange floor.
Since Netflix began offering subscribers streaming option, it had never run an ad or promotion on its different packages, but that ad-free era is coming to an end.
Netflix had hinted on the new direction in April, and the partnership with Microsoft has shown that the company is moving into a new era where subscribers will be compelled to watch ads, in a bid to multiply the streamer’s revenue sources.
In a statement posted on Microsoft website, seen by Ripples Nigeria, Netflix didn’t disclose when the ad-supported subscription plan would begin, however, Netflix Chief Operating Officer, Greg Peters, said there would be “TV brand experience for advertisers” and “we are pleased to announce that we have selected Microsoft as our global advertising technology and sales partner.”
Peters stated, “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.”
The statement further reads, “Microsoft has the proven ability to support all our advertising needs as we together 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.”