U.S. streaming firm Netflix Inc. chose to partner with Microsoft Corp. in offering a subscription plan that contained ads but was cheaper.
It is a follow -up to the firm’s poor performance last April which saw a sharp decline in the number of users in more than a decade.
This has forced the firm to reduce subscription prices and include advertisements in its services to cover rising costs due to inflationary pressures of 9.1% in the US.
Neflix co -chief executive Ted Sarandos said the firm is in talks with other businesses to find the best way to impress consumers.
This has since led to a collaboration with Microsoft as alleged by Chief Operating Officer Greg Peters, the company is proving to have the ability to support Netflix’s advertising needs.
He added that Microsoft also offers new innovative flexibility in terms of technology and sales that can be leveraged in offering subscription plans containing firm ads.
It turns out that Neflix's action contradicts the firm's stance that it does not want the advertising element in the service but it is a step that should be taken.
Given the increasing competition with the presence of other streaming such as Amazon Prime, HBO Max, Apple TV and Disney+ it is not surprising that Netflix reduced its subscription price but had to compromise with advertising.
Meanwhile, Netflix has previously said that the advertising subscription plan will be launched as early as next year in the Asian market and it is hoped that it can attract more new users.
