Netflix lost nearly another million subscribers during the second quarter of 2022, but it hopes the launch of a new ad-supported streaming tier in partnership with Microsoft early next year can boost growth.
The new budget service will launch early in 2023, starting in a select number of regions where advertising spend is strongest. This will join the existing ad-free basic tier, as well as paid standard and premium subscription plans.
Netflix chief operating officer Greg Peters told analysts during the company’s earnings call yesterday that “all of the ads that are served on our ad-supported offering will come through Microsoft. So that’s an exclusive arrangement with them.”