Although it is still in its “early days,” you will soon be able to sign up for a less expensive version of Netflix with advertisements.
Microsoft and Netflix will collaborate on this new subscription service that is ad-supported, the two firms said on Wednesday.
The collaboration comes after the unexpected news that Netflix (NFLX), which CEO Reed Hastings had long resisted, would be open to offering a cheaper, ad-supported tier to its service in April. But after losing customers in the first quarter for the first time in more than a decade, the firm is currently going through one of the worst times in its 25-year history.
Although the launch date of the ad tier hasn’t been formally confirmed, the New York Times reported in May that Netflix had informed staff that it might happen by the end of 2022.
On Wednesday, Netflix acknowledged that the decision is still “very early in the process” and that the business still has “lots to work out” before rolling out an ad-supported tier to its 221.6 million global members.
That new tier will be activated by Microsoft’s powerful ad sales division. Greg Peters, Netflix’s COO and CPO, said in a statement on Wednesday that “Microsoft offered the ability to innovate” in terms of both technology and sales, and that it also promised strong privacy protections for Netflix subscribers.
“More choice for viewers and a premium, better-than-linear TV brand experience for advertisers,” he said, “is Netflix’s long-term ambition.”
Netflix announced in April that it lost 200,000 subscribers in the first quarter of 2022 and that it anticipates losing an additional 2 million in the following three months. That information caused a stock fall and alarmed investors not only about Netflix’s future but also about the streaming industry as a whole.
On Tuesday, Netflix will release second-quarter earnings, and attention will be focused on its subscriber base.
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Things to Know
- Share accounts with family and friends: Select “Profile” > “Who’s watching” Edit Profiles > Make a profile. Name, then click “Continue” Done.
- Some businesses, including telephone and cable providers, run deals that come with a free Netflix subscription.
- T-Mobile: Enroll in a T-Mobile One plan.
2. Is Netflix free now?
What is the price of Netflix? For a single fixed monthly subscription, watch Netflix on your smartphone, tablet, Smart TV, laptop, or streaming device. Plans are priced from US$9.99 and US$19.99 per month. No additional fees, no agreements.
