Netflix, an American subscription streaming company has teamed up with tech giant Microsoft to offer a cheaper plan. However, with this plan, customers will get adverts during shows. According to the service provider, this service is an addition to the existing ones. It doesn’t include adverts. Also, the firm didn’t reveal the plans charges for the new service.
Netflix cut hundreds of Jobs
Earlier this year, Netflix cut hundreds of jobs, losing subscribers. Also, it stopped its services in Russia amid the crisis between Russia and Ukraine. According to BBC reports, it lost 200,000 subscribers between January and March. And it also expects to lose more subscribers in the coming months.
Netflix said that it had selected Microsoft as its global advertising technology. Microsoft will be a sales partner introducing a‘’ lower-priced ad-supported subscription plan’’.
Netflix’s chief operating officer Greg Peters said in a statement.”It’s very early days and we have much to work through, but our long-term goal is clear. More choice for consumers and a premium, better-than-linear TV brand experience for advertisers.”
Netflix never wanted Adverts
This was a unique feature of Netflix that it was an ads-free video-streaming firm. Its entire business model was built around subscriptions. Yet, Netflix has had to rip up its own rules after loss.
Meanwhile, Netflix is facing huge competition from the likes of HBO Max, Amazon Prime, Apple Tv and Disney +. In the world of choices, it is vital to create cheaper service- with adverts- the firm says. Netflix is expecting to attract new audiences with cheaper services meanwhile embracing ads.
The company is to renegotiate the deals it has with entertainment firms. Last Month, Netflix co-chief executive Ted Sarandos said that it was in talks with several companies to find ways to attract price-sensitive audiences.
Mr Sarandos told an audience at a conference in Cannes.”We’re not adding ads to Netflix as you know it today. We’re adding an ad tier for folks who say ‘Hey, I want a lower price and I’ll watch ads’,”