Netflix has announced a partnership with Microsoft for advertising, which the streamer wants to incorporate into its new subscription plan. This is reported by CNBC.
“Microsoft has the proven ability to support all our 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,” said COO Greg Peters.
The new subscription plan is planned to be launched by the end of 2022. Netflix also considered Google and Comcast as potential partners – and unlike them, Microsoft does not have its own competing service. As a reminder, Google owns YouTube, and Comcast owns NBCUniversal’s Peacock.
For many years, the company resisted the decision to create an advertising-supported plan, but announced its development in April of this year. Netflix co-CEO Ted Sarandos recently said that it makes sense to offer a cheaper subscription option to users who find the subscription too expensive but don’t mind watching ads.
Netflix has already lost 600,000 subscribers in the US and Canada after raising subscription prices. Prices for services had to be raised due to the high costs of creating its own content, with which the company plans to attract more users.