Netflix has announced that it will work with Microsoft to launch a cheaper ad-supported subscription plan as the streaming giant fights to attract new customers.
The streamer has opted to offer a lower-cost subscription plan with advertisements in a bid to acquire more customers after the company reported massive loss of subscribers during the first quarter of the year.
The ad-supported Netflix subscription will be offered in addition to the already available ad-free options. As for the new subscription tier, Netflix has stated that Microsoft will be responsible for managing advertisements on the streaming platform.
“It´s very early days and we have much to work through,” Greg Peters, Netflix´s chief operating officer, said in a statement. On the other hand, Microsoft added that advertisers “will have access to the Netflix audience and premium connected TV inventory.”
It is pertinent to mention that adding advertisements to the platform may end up making Netflix the target of public criticism like Facebook and Good as consumers will be more worried about their personal data being used to target them with personalized ads.
Furthermore, Netflix is also working on stopping password sharing across the platform, which is responsible for the company losing a big chunk of its revenue.