Netflix Inc said it has selected Microsoft Corp as a technology and sales partner for its planned ad-supported subscription offering, as the streaming giant looks to plug slowing subscriber growth by rolling out a cheaper plan.
Shares of Netflix rose 2% to $178.06 on the news.
Netflix announced in April that it would introduce a new, lower-priced version of its service; in a bid to attract more subscribers. The announcement came as the pioneering subscription service posted its first subscriber loss; in more than a decade, and projected deeper losses to come.
Chief Operating Officer Greg Peters said in a blog post that
Netflix chose Microsoft because of its ability to innovate over time, as well as its strong privacy protections.
“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,” Peters said.
Microsoft President Brad Smith has served on Netflix’s board since 2015.
Netflix, Inc. is an American subscription streaming service and production company. Launched on August 29, 1997, it offers a film and television series library through distribution deals as well as its own productions, known as Netflix Originals.
Microsoft Corporation, commonly known as Microsoft, is an American multinational technology corporation which produces computer software, consumer electronics, personal computers, and related services headquartered at the Microsoft Redmond campus located in Redmond, Washington, United States.