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  • Netflix has partnered with Microsoft for its ad-supported tier.
  • Microsoft will act as its advertising technology and sales partner globally.
  • The cheaper subscription plan is expected to launch later this year.

With Microsoft as its commerce partner, it is certain that there will be an ad-supported tier for its competitors. The service has a partnership with the software company.

Microsoft will sell ads on the cheaper tier of the service. Advertisers will be able to see the audience and premium connected TV inventory.

"Microsoft has the proven ability to support all our advertising needs as we work together to build a new ad-supported offering," Greg Peters wrote in a post. Microsoft gave us the flexibility to innovate on both the technology and sales side, as well as strong privacy protections for our members.

The loss of 200,000 subscribers in the first quarter of 2022. Password sharing could be cracked down. In March of last year, the service said it was considering charging members an extra fee to share their password. The trial feature has been implemented in several countries.

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The partnership gives it access to Microsoft's advertising partners.

It gives Microsoft an opportunity to attract more advertisers. It was a hard win for the company. According to The Wall Street Journal (opens in new tab),Netflix sought deals with some of the biggest names in advertising before agreeing to a deal with Microsoft.

Microsoft's president for web experiences said in a post that this is a big day for the company and its partners. New premium value to our marketers and partners is something we are excited to offer.

Many of the best streaming devices and smart TVs are being fought for byNetflix. It's not clear if the upcoming tier will convince users to sign up for a cheaper streaming experience.

Rumors say that the ad-supported plan will be rolled out later this year.