According to a statement on Twitter by Satya Nadella, Chairman and CEO of Microsoft Corporation, Netflix’s new ad-supported tier will be rolled out as a partnership with Microsoft. Industry analysts theorize that this may lead to lower costs of subscriptions. In April 2022, Netflix CEO Reed Hastings publicly stated that the streaming giant was quite open to the ad-based subscription model. This new ad-based subscription announcement was immediately followed by a loss of 200 thousand subscribers and a massive hit to the stock evaluation of Netflix. Hence, Netflix Partnered With Microsoft For Subscription With Ad.
A post on Netflix’s official website says, “It’s very early, and we have much to work through. However, our long-term goal is polished. There would be more options for consumers and a premium, better-than-linear TV brand experience for advertisers. Also, we’re excited to work with Microsoft as we bring this new service to life.”
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