Netflix said on Wednesday that it has selected Microsoft as its technology and sales partner for its planned ad-supported subscription offering, as the streaming giant seeks to stem the rate increase. Subscriber growth is slowing down by launching a cheaper package.
Shares of Netflix rose 2 percent to $178.06 (nearly Rs. 14,100) on the news.
Netflix announced in April, they will introduce a new version of the service at a lower price to attract more subscribers. The announcement comes as the subscription service pioneer announced the loss of its first subscriber in more than a decade and is expected to suffer even deeper losses.
“It is very early days and we have a lot of work to do. But our long-term goals are very clear. More choice for consumers and a better linear, premium TV brand experience for advertisers,” Peters said.
Microsoft President Brad Smith has served on Netflix’s board since 2015.
Microsoft also announced this news in a blog post says that “at launch, consumers will have more options to access Netflix’s award-winning content.”
It was report Earlier on Wednesday, Netflix was looking to tweak its programming contracts with Hollywood studios to allow the streaming pioneer to launch a version of its ad-supported service, according to reports. of The Wall Street Journal.
Netflix told Reuters it was still in the early days to decide how to roll out a lower priced, ad-supported option, adding that it was all speculation at this point.
Warner Bros., Universal and Sony did not immediately respond to Reuters’ request for comment.
In early June, co-CEO Ted Sarandos said Netflix was in talks with several companies to collaborate on advertising.
© Thomson Reuters 2022