Netflix and Microsoft team up for cheaper plan with adverts

Image source, Netflix

Customers who subscribe to the cheaper plan will be able to see adverts.

The new service will be an addition to the existing plans.

After it reported its first subscriber loss in more than a decade, shares in the streaming service plummeted.

Ted Sarandos said the company was in talks with other businesses to find ways to appeal to price sensitive audiences.

On Thursday, it was announced that Microsoft had been selected as its global advertising technology and sales partner.

"Microsoft has the ability to support all our advertising needs as we work together to build a new ad-supported offering," Greg Peters said in a statement.

Microsoft gave us the flexibility to innovate over time on both the technology and sales side, as well as strong privacy protections for our members.

The president for web experiences at Microsoft said that customers will soon have more options to access the streaming service.

Microsoft will be able to give marketers access to the premium connected TV inventory." He said that all ads would be available through Microsoft.

The Wall Street Journal reported on Tuesday that the company is trying to change the deals it has with entertainment companies so that it can show advertisements.

Warner Bros., Universal and Sony Pictures Television are said to have been discussed by the firm.

When contacted by the BBC on Wednesday, Warner Bros refused to speak. Universal and Sony didn't reply to the request.

In April, the company's shares slumped by more than a third after it revealed a sharp drop in subscribers.

Experts warned that it would be difficult to get back on track after the sell-off wiped more than $50 billion off the company's market value.

The firm cut 300 jobs last month as it dealt with a drop in customer numbers.

Mr. Sarandos said last month that the company was in talks with several companies.

We don't plan on adding ads to the service. "We're adding an ad tier for folks who say 'Hey, I want a lower price and I'll watch ads'."