Netflix will partner with Microsoft on this new ad-supported subscription plan, the two companies announced Wednesday.
Netflix said Wednesday that the move is in “very early days” and that the company has “much to work through” when it comes to introducing an ad tier to its 221.6 million subscribers globally.
Netflix’s “long-term goal is clear: More choice for consumers and a premium, better-than-linear TV brand experience for advertisers,” he added.
In April, Netflix reported that it lost 200,000 subscribers in the first quarter of 2022 and that it expects to lose another 2 million in the second quarter. That news sparked a stock decline — and spooked investors about not only the future of Netflix, but about the entire streaming business overall.
Netflix reports second-quarter earnings on Tuesday, and all eyes will be on its subscription numbers.