Netflix is collaborating with Microsoft for the upcoming ad-supported subscription

Netflix has found a partner for its forthcoming ad-supported level. On Wednesday, Netflix announced it would collaborate with Microsoft on the project. In a blog post published by Microsoft, the firm noted that it would provide technological and sales expertise to Netflix.

As recently as last month, The Wall Street Journal claimed Google and Comcast were among the frontrunners to provide Netflix with an ad-supported service. On Wednesday, Netflix announced that it had chosen Microsoft for the "proven track record" of the tech giant in providing great customer support. "Microsoft offered a lot of freedom to innovate over time on both technological and sales fronts, as well as strong privacy protections for our members," Chief Operations Officer Greg Peters said. It's worth noting that Microsoft does not have its own streaming service.

Reed Hasting, Netflix's co-CEO, first revealed the firm was looking at cheaper alternatives in April. Following Netflix's announcement that it had lost 200,000 subscribers in the first quarter of 2022, Hastings said the company intended to finalize the specifics of its options "over the next year or two." On Tuesday, Netflix is expected to reveal second-quarter earnings; according to CNBC, it recently informed investors it may have lost as many as two million subscribers during the previous three months.