Netflix partners with Microsoft on new ad-based subscription tier

Netflix has chosen Microsoft to be its tech and sales partner for a new ad-based subscription tier.

Consumers can now choose to pay for a cheaper subscription service that includes advertisements.

The move comes at a time when the streaming service is losing subscribers for the first time in a decade and despite the company’s chief executive previously saying he was against introducing ads to the platform.

In an interview with variety in 2020, Netflix boss Reed Hastings said: “we want to be the safe respite where you can explore, get stimulated, have fun, enjoy, relax — and have none of the controversy around exploiting users with advertising.”

Last month, a report from the Wall Street Journal (WSJ) said that Google was the frontrunner to partner with the company on its new subscription tier.

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