Monday, September 15, 2025

Latest

Netflix Is Pushing Through With Its Ad-Based Tier Subscription With Microsoft

Following through its previously announced plan to introduce a lower-priced, ad-based subscription tier, Netflix (Nasdaq: NFLX) announced on Wednesday that it has chosen Microsoft (Nasdaq: MSFT) as its partner to run the ads.

“Microsoft has the proven ability to support all our needs as we together build a new ad supported offering. More importantly, Microsoft offered the flexibility to innovate over time on both the technology and sales side, as well as strong privacy protections for our members,” said COO Greg Peters in a statement.

While Co-CEO Reed Hastings has initially opposed introducing ads to the platform, the chief executive indicated the plan for an ad-supported service earlier in April.

“We’re trying to figure out over the next year or two. But think of us as quite open to offering even lower prices with advertising as a consumer choice,” Hastings said.

Since announcing the plan, the company has been interviewing companies to partner with to run the ads, including Google and Comcast. But compared to these two giants, who own streaming platforms Youtube and Peacock, respectively, Microsoft doesn’t own any similar or competing service.

The partnership is also expected to boost Microsoft’s ad revenue, which accounts for around 6% of its total revenue.

Netflix reported in its Q1 2022 results its first quarter-on-quarter decline in its membership base in 10 years. It also forecasted a further decline of 2.0 million users for Q2 2022.

During the quarter reported, it also recorded losing around 200,000 users during the quarter, far from its guidance of 2.5 million net membership additions.

The streaming platform, while it saw an increase in watching hours, is also facing fierce competition from other alternatives.

In late June, the company laid off around 300 employees, following the 150 job cuts it made the previous month.

Netflix last traded at US$176.56 on the Nasdaq.


Information for this briefing was found via CNBC and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

New Found Gold: The Strategic Maritime Resources Purchase

Amex Exploration: Revised Perron PEA Has INSANE Economics

Aris Mining: The Multi Billion Dollar Soto Norte PFS

Recommended

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

Related News

Microsoft Is Going Nuclear, Hiring Post Reveals

Microsoft (NASDAQ: MSFT), the tech giant headquartered in Seattle, is taking bold strides towards supplying...

Monday, September 25, 2023, 10:07:08 AM

Microsoft Cuts Off Cloud Services in Russia Amid Sanctions

Microsoft (NASDAQ: MSFT) earlier this week announced it will terminate cloud services for Russian users...

Saturday, March 23, 2024, 07:14:00 AM

Storycraft: The Art of Association In Capital Markets

An equities market, well over-inflated by fake money and fully detached from the economy that...

Sunday, August 23, 2020, 09:00:00 AM

Netflix Wants To Show You More Ads

Netflix (NASDAQ: NFLX) has made the strategic move of discontinuing its basic ad-free plan in...

Thursday, July 20, 2023, 12:41:00 PM

Microsoft: Analysts Anticipate Q4 Earnings Per Share Of $2.29

Microsoft (NASDAQ: MSFT) will be reporting its fiscal fourth quarter financials today after markets close....

Tuesday, July 26, 2022, 10:57:00 AM