On Tuesday, Netflix reported the loss of subscribers for the second quarter in a row as the streaming giant fights engrossed competition.
The loss of 9,70,000 paying customers in the most recent quarter, however, was less than expected, leaving the organization with just 221 million subscribers.
After garnering subscribers, Netflix lost two lakh customers across the globe in the first quarter compared to the end of 2021, which sent its share plunging.
The streaming giant reacted by disclosing its idea of advertising on the service, with the objective to fund the investment is important to maintain its position as a pioneer in the industry that it started.
Netflix executives have also made it clear that the organization will get difficult on sharing logins and passwords, which enable many people not to pay for the content of the platform.
With a motive to draw new subscribers, Netflix is likely to work with Microsoft, which will aid to launch a cheaper subscription plan that includes advertisements.
Netflix chose to develop the lower-cost offering after a distressing 1st quarter in which it lost subscribers for the first time in a decade, and after years of resistance against the very idea of running ads.
The ad-support subscription will be in addition to the three options already available, the cheapest being $10 per month in the United States
Microsoft will be responsible for designing and managing the platform for advertisers who want to serve to ads to Netflix users.