Microsoft has recently been named as Netflix’s official technology and sales partner for the soon-to-be-available, more economical subscription tier that advertisements will now support.
With the restriction that it contains advertisements, this collaboration will offer a cost-effective tier for individuals who still want to watch Netflix shows but are on a very limited budget. Netflix made it clear that they continue to provide standard ad-free memberships.
Microsoft’s Chairman and CEO, Satya Nadella, tweeted about the company’s collaboration with Netflix.
When it was announced that Netflix had lost customers for the first time in ten years and had less revenue as well, the news of the new ad-supported subscription plan surfaced. Another factor is that Netflix started dabbling in games to keep users on the service, and now they’re thinking about live streaming to address the problem of password sharing.