Recently, there have been a lot of conversations about Netflix and its ability to adapt to a dire situation. Reports about the streaming service’s new subscriber models caused many users to abandon the service but the company is now actively working to rectify the losses by working with Microsoft on new ideas.
When the public backlash started affecting stock prices, Netflix had announced that it would launch a cheaper service that would suit the demands of customers. According to the company, users could choose a cheaper subscription if they decided to opt for a model that would allow Netflix to show adverts.
Netflix chief operating officer Greg Peters said: “Microsoft has the proven ability to support all our advertising needs as we work together to build a new ad-supported offering. More importantly, Microsoft offered the flexibility to innovate over time on both the technology and sales side, as well as strong privacy protections for our members.”
Following in the footsteps of other streaming services such as HBO Max, Netflix will launch a subscription model which will be supported by advertisements. This announcement is followed by the concerning report that there has been an additional loss of 2 million subscribers on a global scale until the end of June.
Talking about the future of this plan and the expected trajectory of the team-up with Microsoft, Peters continued: “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.”