Netflix said on Wednesday that it has selected Microsoft as its technology and sales partner for its planned ad-supported subscription offering, as the streaming giant seeks to stem the rate increase. Subscriber growth is slowing down by launching a cheaper package.
Shares of Netflix rose 2 percent to $178.06 (nearly Rs. 14,100) on the news.
Netflix announced in April, they will introduce a new version of the service at a lower price to attract more subscribers. The announcement comes as the subscription service pioneer announced the loss of its first subscriber in more than a decade and is expected to suffer even deeper losses.
Chief Executive Officer Greg Peters speak in a blog post that Netflix picked up Microsoft for its ability to innovate over time as well as its strong privacy protection.
“It is very early days and we have a lot of work to do. But our long-term goals are very clear. More choice for consumers and a better linear, premium TV brand experience for advertisers,” Peters said.
Microsoft President Brad Smith has served on Netflix’s board since 2015.
Microsoft also announced this news in a blog post says that “at launch, consumers will have more options to access Netflix’s award-winning content.”
It was report Earlier on Wednesday, Netflix was looking to tweak its programming contracts with Hollywood studios to allow the streaming pioneer to launch a version of its ad-supported service, according to reports. of The Wall Street Journal.
The company has begun negotiations with Warner Bros., Universaland Sony Pictures TVthe report said, citing people familiar with the matter.
It will also need to renegotiate deals for older TV shows like Break from Sony and NCIS from Paramount GlobalAccording to the report.
Netflix told Reuters it was still in the early days to decide how to roll out a lower-priced, ad-supported option, adding that it was all speculation at this point.
Warner Bros., Universal and Sony did not immediately respond to Reuters’ request for comment.
In early June, co-CEO Ted Sarandos said Netflix was in talks with several companies to collaborate on advertising.
© Thomson Reuters 2022
