Netflix, Microsoft partner for subscription with ads

Dhaka: Netflix Inc said on July 13 that it has selected Microsoft Corp as technology and sales partner for its planned ad-supported subscription offering, as the streaming giant looks to plug slowing subscriber growth by rolling out a cheaper plan.

Shares of Netflix rose 2 per cent to USD 178.06 on the news.

Netflix said in April that it would introduce a new, lower-priced version of its service in a bid to attract more subscribers. The announcement came as the pioneering subscription service posted its first subscriber loss in more than a decade, and projected deeper losses to come.

Chief Operating Officer Greg Peters said in a blog post that Netflix chose Microsoft because of its ability to innovate, as well as for its strong privacy protections.

"It's very early days and we have much to work through. But our long-term goal is clear. More choice for consumers and a premium, better-than-linear TV brand experience for advertisers," said Peters.

Microsoft President Brad Smith has served on Netflix's board since 2015.

The partnership announcement comes ahead of Netflix's second-quarter earnings report on July 19. The company cautioned investors it could lose as many as 2 million subscribers in the period, despite the return of such popular series as "Stranger Things," which broke viewer records.

Netflix joins a number of its rivals in offering ad-supported service, including Walt Disney Co's Hulu, NBCUniversal's Peacock and Warner Brothers Discovery's HBO Max.

Disney also plans to introduce a version of Disney+ with commercials.