Netflix announced on July 13 that it has partnered with Microsoft for its new ad-supported subscription plan.
“Microsoft has the proven ability to support all our advertising needs as we work together to 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,” Netflix Chief Operation Officer Greg Peters said in a statement.
Mikhail Parakhin, the president of web experiences at Microsoft, said in a statement that the tech giant was “excited to offer new premium value to our ecosystem of marketers and partners while helping Netflix deliver more choice to their customers.”
“This is a big day for Netflix and Microsoft,” Parakhin said.
All ads on Netflix will be exclusively available through the Microsoft platform, according to Parakhin.
The companies did not provide additional details about the pricing of the ad-supported service or when it will launch.
The announcement comes as Netflix faces challenges in its subscriber base and competition from other streaming services, like Hulu, Disney+, and HBO Max.
Netflix previously announced that it lost 200,000 subscribers in the first quarter and expects to lose two million more in the second quarter.
Netflix laid off 450 employees in the past few months to cut costs.
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