Netflix partners Microsoft to offer cheaper subscriptions with ads


Mandy How | July 15, 2022, 04:19 PM

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Netflix is tweaking its subscription models.

Besides raising prices, viewers from different households who are sharing an account will also be asked to pay "a bit more":

Next, the streaming giant is looking at lower-priced subscriptions that come with advertisements.

The plan was first announced in April this year.

More details have been released by Greg Peters, Netflix's chief operating officer (COO) and chief product officer (CPO).

For a start, the service has confirmed Microsoft as its global advertising technology and sales partner.

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

However, the COO said, things are still in "very early days," and there is much to work through.

It was last reported that the plan may only come into effect in a year or two.

On their end, Microsoft announced on the same day that all advertisements served on Netflix will be exclusively available through the Microsoft platform.

This means that marketers who want to get their ads on Netflix will have to work through Microsoft.

Losing subscribers

The streaming giant lost 200,000 subscribers in the first quarter of 2022, instead of gaining a projected 2.5 million.

It was the first time in a decade that Netflix has lost subscribers.

The relatively modest projection had already come on the back of a year of slow growth in 2021.

Netflix blamed the Russian invasion of Ukraine, which caused the service to leave Russia and lose 700,000 subscribers.

Without it, Netflix estimated it would have recorded a net addition of 500,000 subscribers, which is still 2 million short of its first estimate.

It also blamed password sharing among its subscribers for the low growth.

In May 2022, Netflix laid off around 150 staff, mostly U.S.-based employees.

Netflix has a total staff of around 11,000.

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Top image via Netflix