Microsoft will be a partner for the ad-supported service ofNetflix.
As we build a new ad supported offering, Microsoft has the ability to support all of our needs. Greg Peters said that Microsoft offered the flexibility to innovate over time on both the technology and sales side.
In April, the streamer announced that it was going to roll out an ad-supported tier after years of resisting the move.
Reed Hastings said during the company's pre recorded earnings conference call that it makes a lot of sense to offer customers a cheaper option.
There is a spinoff of 'Stranger Things.'
As it tries to sign up more users, the offering has a lot of profit potential for the company. In order to get more people to subscribe to its service, it has increased its content spending. The company raised prices to pay for it. In the most recent quarter, the company lost 600,000 subscribers in the US and Canada due to price changes.
As it prepares to launch a tier before the end of the year, it has been interviewing potential partners, including internet giants.
Microsoft doesn't have a competing streaming service to compete withNetflix
The ad-efforts are still in the very early days.
Earnings for the third quarter are due Tuesday. During the second quarter, it warned it could lose two million subscribers. The shares of the company have plummeted.
Microsoft's advertising division contributes a sixth of the company's total revenue.
The Bing search engine, where Microsoft picks up revenue by showing ads in search results, is not as popular as the other search engines.
CNBC contributors included Sarah Whitten, Jordan Novet and Alex Sherman.
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