Netflix chooses Microsoft for its ad-supported subscription plan: On Wednesday, the streaming giant said that it had chosen Microsoft as its technology and sales partner for its next ad-supported subscription service as it attempts to counteract sluggish subscriber growth by introducing a more affordable option.
As a result of the announcement, Netflix shares increased by 2% to $178.06 (just about Rs. 14,100).
To entice more subscribers, Netflix declared in April that it would launch a new, more affordable version of its service. The news was made as the innovative subscription service reported its first decline in subscribers in more than ten years and forecasted much worse losses.
In a blog post, Netflix’s chief operating officer Greg Peters said that the company selected Microsoft because of its long history of innovation and its stringent privacy policies.
“It’s still extremely early, and there are many issues to resolve. However, our long-term objective is obvious. According to Peters, more options for customers and superior-than-linear TV brand experiences for marketers.
Netflix chooses Microsoft for its ad-supported subscription plan
Brad Smith, the CEO of Microsoft, has been a member of the Netflix board since 2015.
In a blog post, Microsoft also revealed the information and said that “upon the launch, users will have additional alternatives to watch Netflix’s award-winning programming.”
The Wall Street Journal reported on Wednesday that Netflix is attempting to change its agreements with Hollywood studios for the television shows and movies it produces to launch an ad-supported version of the service.
According to the article, which cited persons with knowledge of the situation. The corporation has begun negotiations with Warner Bros., Universal, and Sony Pictures Television.
According to the article, it will also need to renegotiate contracts for older television programs. Including Sony’s Breaking Bad and Paramount Global’s NCIS.
Netflix told Reuters that it is still debating how to provide a more affordable. Ad-supported alternative and that everything is simply speculative at this stage.
Requests for comments from Reuters not immediately answered by Warner Bros., Universal, or Sony.
Co-CEO Ted Sarandos said earlier in June that Netflix is in discussions for advertising deals with several businesses.