The streaming giant chose Microsoft as its partner for a cheaper ad-supported subscription plan as it tries to reverse a drop in subscribers after its shares have cratered.
A silhouetted person is holding a phone with a logo on it. There is a photo illustration by Rafael Henrique.
Greg Peters said in a statement that Microsoft was chosen partly because of the company's strong privacy protections.
The New York Times reported in May that the tier could be rolled out by the end of the year.
The company's shares rose 1.51% Wednesday.
In the first quarter of the year, the streaming company lost about 200,000 subscribers, the first loss in over a decade, and well below analysts' expectations. Password sharing was blamed for the decline in the service. Analysts warned that it could take years for the company to implement its plan to recover lost subscribers. While Reed Hastings had long been against adding commercials to the streaming platform, he relented in April and said it would introduce a lower priced tier.
The company's second-quarter earnings will be released Tuesday. In its first-quarter earnings report, the company said it could lose 2 million customers over the next few months.
More than $2 billion. Forbes has a real-time wealth tracker.
It's the first time in ten years that the company has lost subscribers.
There is a growth story in the stock crash.
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