In order to provide users with a less expensive membership option that includes advertisements, Netflix has partnered with Microsoft.
The industry leader in streaming claims that the service will be a “addition” to its current subscriptions, which are free of advertisements.
How much the business intends to charge customers for the new service is still a secret.
After reporting its first membership decline in more than ten years and making hundreds of job cuts earlier this year, Netflix made the announcement.
On Thursday, the firm said it has picked Microsoft as its worldwide advertising technology and sales partner to create a “lower cost ad-supported membership option”.
In a statement, Netflix’s chief operating officer Greg Peters stated, “It’s really early, and we have a lot to work through.
“However, our long-term objective is obvious. Consumers will have more options, and marketers will have a superior, non-linear TV brand experience “Added he.
The Wall Street Journal reported on Tuesday that Netflix is attempting to restructure its contracts with significant entertainment companies so that it may include advertisements in its service.
According to reports, the company has talked with Sony Pictures Television, Universal, and Warner Bros.
After revealing a dramatic decline in members and issuing a warning that millions more were about to leave the streaming service, Netflix’s shares fell by more than a third in April.
The sell-off reduced the company’s stock market value by more than $50 billion, and analysts cautioned that it would be difficult for it to get back on track.
The business announced 300 job losses last month as it struggled with the decline in consumer volume.
Also in the last month, Netflix’s co-CEO Ted Sarandos stated that the company was in discussions with a number of businesses to identify methods to appeal to customers who were price-conscious.
“Netflix as it now exists won’t get any more advertisements. For those who say, “Hey, I want a cheaper price and I’ll watch advertisements,” we are adding an ad tier “Speaking to a crowd at a conference in Cannes, Mr. Sarandos said.