Netflix has discovered a associate for its upcoming ad-supported tier. On Wednesday, the corporate introduced it plans to work with Microsoft on the trouble. In a weblog submit revealed by Microsoft, the tech big mentioned it could present Netflix with technological and gross sales experience.
As just lately as final month, The Wall Street Journal steered Google and Comcast had been among the many main candidates to assist Netflix construct out an ad-supported tier. On Wednesday, Netflix mentioned it chosen Microsoft for the tech big’s “confirmed capability” to help its prospects. “Microsoft supplied the pliability to innovate over time on each the expertise and gross sales facet, in addition to sturdy privateness protections for our members,” mentioned Netflix Chief Operating Officer Greg Peters. Not talked about is the truth that Microsoft would not function a competing streaming service.
Netflix co-CEO Reed Hasting first revealed the corporate was exploring cheaper plans this previous April. The admission got here after Netflix introduced that it had misplaced 200,000 subscribers within the first quarter of 2022. At the time, Hastings mentioned the corporate deliberate to finalize the small print of its plans “over the following 12 months or two.” Netflix is scheduled to announce its second-quarter earnings on Tuesday. According to CNBC, the corporate just lately warned Wall Street it could have misplaced as many as two million subscribers over the previous three months.