Netflix and Microsoft team up for cheaper plan with ads

Image source, Netflix

Netflix has partnered to Microsoft to offer a cheaper subscription plan to customers who will display advertisements.

The streaming giant says the service will be an "add-on" to its existing plans, which do not include ads.

The company has yet to reveal how much it plans to charge subscribers for the new service.

Netflix announced the move after reporting its first loss of subscribers in more than a decade and cut hundreds of jobs earlier this year.

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It lost 200,000 subscribers between January and March, down from 2.5 million analysts expected the company to add during the period. Netflix also expects to lose an additional two million subscribers between April and June.

The company said it has chosen Microsoft as its global technology partner and advertising sales to introduce an "ad-supported subscription plan at a lower price".

"It's very early and we have a lot to do," Netflix COO Greg Peters said in a statement.

"But our long-term goal is clear. More of choice for consumers and a premium, better-than-linear TV brand experience for advertisers."