Netflix Moves Closer to Launching Its Ad-Supported Plan

Netflix announced Wednesday that it's following through with its plan to launch an ad-supported subscription option. The streamer is partnering with Microsoft to bring the lower-cost subscription tier to the screen.

In a statement, Netflix said the move is in its "very early days" and did not provide a timeline for when subscribers can expect to see the ad-supported option roll out. The company said it has "much to work through" when it comes to implementing the ad-supported version of the service to its hundreds of millions of subscribers.

By partnering with Microsoft, Netflix hopes to utilize the software company's "flexibility to innovate over time" and ability to offer "strong privacy protections."

"Our long term goal is clear," said Netflix COO and CPO Greg Peters. "More choice for consumers and a premium, better-than-linear TV brand experience for advertisers."

In recent months, Netflix has struggled with subscriber retention; it lost 200,000 subscribers in the first quarter of 2022 and has warned it could& lose up to 2 million additional subscribers in the second quarter. Moving quickly to get a lower-cost plan up and running is no doubt a priority as the company faces increased competition and a potential global recession.

Kirstie Renae is a writer, blogger, and Austin-based actress with a penchant for binge-watching TV with her dogs. Follow her on Twitter @KirstieRenae.