Netflix To Lower Streaming Cost In New Deal With Microsoft
American subscription streaming service and production company, Netflix has announced that viewers will now have an option to pay for cheaper subscriptions in a new deal with Microsoft. The company will introduce a new lower-priced ad-supported plan for consumers. The move by the streaming giant is meant to attract more viewers in an effort to backtrack its position in the market.
By end of this year’s first quarter, Netflix suffered its first subscriber loss in more than a decade, causing its shares to plunge 25 percent in extended trading amid concerns that the pioneering streaming service may have already seen its best days.
The company’s customer base fell by 200,000 subscribers during the January-March period. Netflix further lost another 2 million subscribers during the April-June period almost devaluing the company by half its worth.
Following the dire losses made in less than 6 months, Netflix has selected Microsoft as the global advertising technology and sales partner. Microsoft will be responsible for designing and managing the platform for advertisers who want to serve ads to Netflix users.
“Microsoft has the proven ability to support all our advertising needs as we work together to build a new ad-supported offering. More importantly, Microsoft offered the flexibility to innovate over time on both the technology and sales side, as well as strong privacy protections for our members,” Netflix co-CEO Ted Sarandos said.
Netflix says the new project is still in its early days and the rollout will be announced at a later date. “It’s very early days and we have much to work through,” Greg Peters, Netflix’s chief operating officer, said in a statement.