After the upcoming launch of a ad-supported subscription, Netflix now has revealed that it chose Microsoft to make that possible. Under the agreement, all ads displayed on Netflix will be available exclusively through the Microsoft platform.
†It is still very early and we still have a lot to process. But our long-term goal is clear. More choice for consumers and a premium, better than linear TV brand experience for advertisers. We are excited to partner with Microsoft as we bring this new service to life‘ said Netflix COO Greg Peters.
Netflix has been making headlines lately with announcing layoffs after the streaming giant reported losses in the previous quarter. At the beginning of this year, Netflix reported a loss of 200,000 subscribers, but that seems extremely negligible compared to the service’s subscriber base of more than 221 million.
The recent drop in subscribers doesn’t really justify so many layoffs, but maybe Netflix fears this will become a trend. That said, the launch of a new ad-supported plan is sure to increase its customer base.
However, it remains to be seen whether the company will succeed in turning those casual consumers into paying customers following the launch of the ad-supported plan later this year.