Netflix, Microsoft Team Up For Its Cheaper Ad-Supported Plan

Recently, Netflix, the popular video streaming platform confirmed that it would bring an ad-based subscription service for its uses in India. Now, the company has announced a partnership with Microsoft to launch its ad-supported subscription plans globally. Going by this announcement, Microsoft has become the global advertising and sales partner of Netflix.

Why Ad-Supported Plans?

Netflix announced its plans to adopt ads a few months back after disclosing that it lost 200,000 subscribers in the first quarter of this year due to the surge in competition and increasing inflation rates that have pressured household budgets. Netflix had also warned that is likely to report larger subscriber losses in the second quarter of this year. Eventually, it had to switch to a cheaper subscription plan backed by ads to help reverse customer erosion.

As per Netflix, the company has offered the flexibility to innovate in the sales and technology segments and focus on strong privacy protections for its subscribers.

Netflix And Microsoft Partnership

In an official blog post, Microsoft announced that it will help Netflix power its first ad-supported offering on a global scale. When the company launches this plan, users will be able to access award-winning content on the platform. As per the official statement, all ads on Netflix will be available exclusively via the Microsoft platform. Furthermore, the announcement endorses the company's approach to privacy, which focuses on protecting user information.

The cheaper and ad-supported Netflix subscription plan is slated to be launched later this year. By saying privacy protection, the company ensures to minimize the intrusions into the privacy of users that comes along with digital ads.

As of now, Netflix remains tight-lipped about the details of the cheaper ad-backed subscription plan. Also, the company has confirmed that it will soon roll out a feature wherein users will be charged to share their Netflix account passwords with others than their family members. Already, this new feature is under testing in some parts of the world and Indian users are yet to get it.

Besides these, video streaming service has not revealed any word regarding the pricing of the cheaper ad-supported plan or the pricing tariff to share the user account password with others.