Netflix said on Wednesday it has selected Microsoft as 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 for 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.
(Reporting by Chavi Mehta in Bengaluru and Dawn Chmielewski in Los Angeles. Editing by Sriraj Kalluvila and Nick Zieminski)
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