Netflix and Microsoft have announced a collaboration to build Netflix’s first ad-supported subscription service. The news comes months after Netflix introduced a new ad-supported service in response to the company’s declining subscriber base. Both firms announced the current announcement in separate blogs, although it is unclear when the new ad-supported model will be available. The subscription’s specifics are likewise unknown.
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Netflix states that its existing ad-free basic, standard, and premium plans will be available to both new and existing users. COO (Netflix) Greg Peters elaborated on the collaboration, saying, “We’re still in the early stages, and there’s a lot to figure out. Our long-term goal, however, is clear: more options for consumers and a premium, better-than-linear TV brand experience for advertisers “.
Reuters reported earlier this month that Netflix was in talks with Warner Bros, Universal, and Sony Pictures Television to launch the ad-supported subscription model.
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It is possible that the new model will not cover the full collection, but rather simply titles from its in-house production unit and major Hollywood studios. However, this is merely supposition, and further information is needed.
Netflix claimed it lost 2,00,000 users in the first quarter. In the midst of a failing economy, the Russia-Ukraine war, in which it lost 7,00,000 users, and exorbitant subscription fees, the corporation faces stiff competition from Disney and Amazon.
Interestingly, Disney+ has also stated that it would have an ad-supported tier. At Rs. 1,500, Disney+ Hotstar’s most expensive annual subscription is still far more cheap. Netflix’s most expensive tier, on the other hand, costs Rs. 7,788. (Rs 649 per month).
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Varushi Yadav
I'm a 4th-year law student at the University of Petroleum and Energy Studies, along with that I'm a creative content writer. So far I have written law-related articles, I like to explore more and I'm always ready to learn more.