Netflix to launch an ad-supported subscription plan along with Microsoft

Netflix and Microsoft have partnered to launch the streaming giant's first ad-supported subscription. The development comes months after Netflix announced a new ad-supported offering amid the company's shrinking subscriber base. Both companies shared the latest news on separate blogs, though it's unclear when the new ad-supported model will roll out. Subscription details have yet to be revealed.

Microsoft says it is "thrilled" to be named Netflix's technology and sales partner. Marketers looking to Microsoft for their advertising needs will access Netflix's audience and connected TV inventory. In addition, all ads published on Netflix will be available exclusively through the Microsoft platform.

Netflix states that its existing basic, standard, and premium ad-free plans will remain available to new and returning customers. Regarding the partnership, Netflix COO Greg Peters said: "It's very early days, and we have a lot to figure out. But our long-term goal is clear: more choice for consumers and a better-than-ever premium TV brand "the linear" experience for advertisers.

Earlier this month, Reuters reported that Netflix began talks with Warner Bros, Universal and Sony Pictures Television to introduce the ad-supported subscription model. It may mean that the new model does not cover its entire catalogue but only selects titles from its in-house production unit and the big Hollywood studios. However, it is just speculation, and more details are expected.

Netflix had said it lost 200,000 subscribers in its first quarter, well below its forecast of adding 2.5 million subscribers. The company faces formidable competition from Disney and Amazon amid a weakening economy, the war between Russia and Ukraine, where it lost 700,000 members, and skyrocketing subscription prices.

Interestingly, Disney's Disney+ has also said it would introduce an ad-supported level. Disney+ Hotstar's most premium yearly plan is still much more affordable at Rs 1500. On the other hand, Netflix's most premium tier costs Rs 7,788 (Rs 649 per month).