Netflix has for years rejected calls for an ad-supported streaming tier, in April this year Netflix co-founder and co-CEO Reed Hastings said during an earnings call that the company is “quite open to offering even lower prices with advertising, as a consumer choice. It seems the plans are now a reality as the streaming company is partnering with Microsoft for its upcoming ad-supported streaming tier, the company announced Wednesday.
“It’s very early days and we have much to work through,” Netflix COO Greg Peters writes in the post. “But our long-term goal is clear. More choice for consumers and a premium, better-than-linear TV brand experience for advertisers. We’re excited to work with Microsoft as we bring this new service to life.”
In a post on Microsoft’s blog, Netflix says marketers will work with Microsoft to bring ads to the Netflix ecosystem. This means that those who opt into this upcoming tier will be forced into watching ads just like we see on YouTube but will be subscribing at a cheaper cost.
News of Netflix’s ad-supported tier emerged after the company revealed a decrease in subscribers for the first time in a decade last quarter, topping out at 222 million globally. The company is also looking into live streaming and ways to clamp down on password-sharing to help reduce the decline in subscribers and revenue.
