Netflix will launch an ad-supported plan backed by Microsoft. The tariff plan will be cheaper than usual, the company reminds.
In April, Netflix announced that it plans to introduce a new ad-supported plan in addition to its existing basic, standard, and premium ad-free plans. The company recently selected Microsoft as its launch partner for ad technology and sales.
As Netflix COO Greg Peters announced, Microsoft has proven its ability to meet the streaming platform's advertising needs and offered flexibility in both technology and sales.
Work on the tariff with advertising is still at an early stage, and its cost has not been announced. It is only known that it will be cheaper than the existing ones.
Initially, the company planned to launch such a tariff in 2023, but then decided to postpone the launch to the end of 2022. The reason was the decrease in the number of users who buy a paid subscription. This trend was noted in the company in the spring.
In April, Netflix released quarterly reports showing that the service lost 200,000 paying customers in early 2022.
“The suspension of our service in Russia and the curtailment of all Russian paid programs had an impact on the net increase in paid services in the amount of minus 700 thousand people, excluding this impact, the net increase in paid services amounted to 500 thousand people,” the document stated.
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