Netflix has teamed up with Microsoft as it works on launching its cheaper ad-supported subscription plan.
It comes after the video streaming service hinted last April that it is considering debuting an ad-supported tier - despite its previous stand to ignore such a subscription option.
LAS VEGAS, NV - JANUARY 06: Netflix CEO Reed Hastings delivers a keynote address at CES 2016 at The Venetian Las Vegas on January 6, 2016 in Las Vegas, Nevada.
Netflix Teams Up with Microsoft for its Ad-Supported Tier
As per a news story by CNBC, Netflix revealed that it is working side by side with Microsoft to make its ad-supported tier a reality.
The Chief Operating Officer (COO) of Netflix, Greg Peters, says "Microsoft has the proven ability to support all our needs as we together build a new ad-supported offering."
The Netflix COO further highlighted that Microsoft precisely offered "strong privacy protections" for the subscribers of the giant streaming service."
But besides privacy concerns, the renowned Redmond-based tech giant also brings "flexibility to innovate over time on both the technology and sales side" of its upcoming ad-supported option.
Netflix Ad-Supported Subscription
CNBC notes in its report that Netflix persistently resisted the idea of debuting an ad-supported subscription in the past.
While its close rivals in the world of streaming services have started luring subscribers through their cheaper ad-supported tier, Netflix decided to forge its path.
The Netflix logo is seen at the Anime Japan 2022 fair in Tokyo on March 26, 2022.
However, according to a recent report by MacRumors, the co-Chief Executive Officer (CEO) of Netflix, Ted Sarandos, announced last June that they are working to introduce a new affordable ad-supported option.
And before its formal announcement, the other co-CEO, Reed Hastings, who vocally resisted including ads, finally conceded to the idea, admitting that the cheaper option "makes a lot of sense."
The cheaper plan should attract a new set of customers who are wary of shelling out $9.99 per month, which is the starting price of the service in the United States.
But when the Netflix co-chief exec confirmed it, Sarandos said they are still on the lookout for their ad partner.
This time, the search is over, and Microsoft has won the partnership.
Netflix Subscription Plans
It is worth noting that the current cheapest plan of Netflix costs $9.99, but it only supports up to 480p video quality, which looks trashy on most massive TVs these days. Instead, it could be best for those who stream their favorite shows and movies on their smartphones.
On the other hand, the Standard plan brings 1080p resolution for a price tag of $15.49 a month.
But that's not the most expensive yet. The Premium plan is available at $19.99 per month, which supports up to 4K HDR video quality.
Netflix has yet to confirm the explicit quality details of its ad-supported plan, but one thing is for sure - the experience would be interrupted by commercials.
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