Netflix has teamed up with Microsoft

The streaming giant Netflix says there will be an "addition" to its existing subscription plans, opening a cheaper version of the service to its subscribers in partnership with Microsoft!

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IMAGE CREDIT - NETFLIX

Netflix has announced that it plans to incorporate a cheaper subscription service that includes adverts, in partnership with microsoft. The streaming giant has not yet revealed how much it plans to charge subscribers for the new service, but it will be an addition to the already available subscription service that is provided by the company.

The company said it had selected Microsoft as its global advertising technology and sales partner to introduce a “lower priced ad-supported subscription plan”.

“It’s very early days and we have much to work through,” Netflix’s chief operating officer Greg Peters said in a statement.

“But our long-term goal is clear. More choice for consumers and a premium, better-than-linear TV brand experience for advertisers.” Peters added.

Netflix never wanted ads. Its entire business model was built around monthly subscriptions. The new addition comes after figures showed that the company was losing subscribers, Netflix is opting to create a newer subscription that is available for those who can’t afford the regular subscription model.

The cost of living crisis has meant that households, tightening their belts, have looked at their subscription services as a potential saving.

To adapt, Netflix is creating a cheaper service – with adverts – that it says will be rolled out later this year. Spotify has a similar model, where music is free if you’re happy to sit through commercials. The hope is that Netflix, by embracing ads, will attract new audiences.

But the move also shows adverts, that were seen by high-end streaming companies as so passé just a few years ago, are very much still alive and kicking.

Netflix is trying to renegotiate the deals it has with major entertainment firms so that it can show adverts as part of its service, the Wall Street Journal reported on Tuesday.

The firm has reportedly held discussions with Warner Bros, Universal and Sony Pictures Television.

Last month, Netflix co-chief executive Ted Sarandos said it was in talks with several companies to find ways to appeal to price-sensitive audiences.

“We’re not adding ads to Netflix as you know it today. We’re adding an ad tier for folks who say ‘Hey, I want a lower price and I’ll watch ads’,” Mr Sarandos told an audience at a conference in Cannes.