Netflix and Microsoft work closely with Advertising for a cheaper plan

 Netflix has teamed up with Microsoft to offer users a cheaper subscription plan that will show ads.

The streaming giant says the service will be an "addition" to its existing plans, which do not include advertising.

The company has not yet disclosed how much it intends to charge customers for the new service.

Netflix announced the move after it reported the first drop in its subscribers in more than a decade and cut hundreds of jobs earlier this year.

It lost 200,000 subscribers between January and March, compared to 2.5 million analysts expecting the firm to join during that period. Netflix also now expects to lose another 2 million subscribers between April and June.

The company said it has selected Microsoft as its global advertising technology and sales partner to introduce a "low-cost ad-supported subscription plan."

"These are very early days and we have a lot to work on," Greg Peters, Netflix's chief operating officer, said in a statement.

"But our long-term goal is clear. More choice for consumers and a better experience for advertisers than a premium, linear TV brand."

Netflix never wanted ads. Its entire business model was built around monthly subscriptions.

Still, Netflix executives had to break their rules.

The horrific statistics show that the company is losing customers.

And the cost of the life crisis means that households, tightening their belts, have seen their Netflix subscriptions as potential savings. Panic has spread among investors.

Netflix also competes with Amazon Prime, HBO Max, Apple TV and Disney +.

There are so many options and there are not enough paying customers to go around.

To adapt, Netflix is ​​creating an affordable service - with ads - that it says will launch later this year.

Spotify is one such model, where music is free if you are happy to sit through the ads.

Hopefully, Netflix will attract new audiences by adopting ads.

But the move also shows ads, which were seen by top streaming companies only a few years ago, are still very much alive and kicking.
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The Wall Street Journal reported Tuesday that Netflix is ​​trying to renegotiate its deals with major entertainment firms to show ads as part of its service.

The firm reportedly spoke with Warner Bros., Universal and Sony Pictures Television.

Warner Bruce declined to comment. Universal and Sony did not immediately respond to a request for comment.

In April, Netflix wiped out مارکیٹ 50bn from its market value when the company revealed a dramatic drop in subscribers - the first drop since October 2011.

The company, which gained millions of customers during the Quaid Lockdown, said it had lost 700,000 customers by shutting down its service in Russia. He also accused rivals of sharing their Netflix passwords with others.

Last month, the firm announced 300 job cuts as it avoided reducing its customer base.

Also last month, Ted Sarandos, Netflix's co-chief executive, said he was in talks with several companies to find ways to appeal to a price-sensitive audience.

"We're not adding ads to Netflix as you know it today. We're adding ads to people who say, 'Hey, I want a lower price and I'll see the ads.'" Told an audience. Conference in Cannes