Netflix partners with Microsoft for ad-supported subscription

Netflix said on Wednesday it has chosen Microsoft as know-how and gross sales companion for its deliberate ad-supported subscription providing, because the streaming big appears to plug slowing subscriber progress by rolling out a less expensive plan.

Shares of Netflix rose 2% to $178.06 on the information.

Netflix introduced in April that it might introduce a brand new, lower-priced model of its service in a bid to draw extra subscribers. The announcement got here because the pioneering subscription service posted its first subscriber loss in additional than a decade, and projected deeper losses to come back.

Chief Operating Officer Greg Peters said in a weblog publish that Netflix selected Microsoft due to its capacity to innovate over time, in addition to its for its robust privateness protections.

“It’s very early days and now we have a lot to work by. But our long-term purpose is obvious. More selection for customers and a premium, better-than-linear TV model expertise for advertisers,” Peters said.

Microsoft President Brad Smith has served on Netflix’s board since 2015.

(Reporting by Chavi Mehta in Bengaluru and Dawn Chmielewski in Los Angeles. Editing by Sriraj Kalluvila and Nick Zieminski)