Netflix said it had selected Microsoft as its sales partner and global advertising technology to introduce a "lower priced ad-supported subscription plan." The streaming platform said the service would be added to its existing plan, without advertisement.
The streaming giant never wanted ads. The entire business model of Netflix was built around monthly subscriptions. But it had to rip off its own rules after a terrible figure showed that the company was losing subscribers. Between January and March, the company lost 200,000 subscribers and is expected to lose Two Million subscribers further. Netflix also cut hundreds of jobs earlier this year.
Grey Peters, the chief operating officer, said, "It's very early days, and we have much to work through." Netflix was forced to take the step as people in crisis are looking at the money of their Netflix subscription as a potential saving. Netflix also has massive competition with HBO Max, Amazon Prime, Disney+, and Apple TV. To adapt to the crisis, Netflix is creating a cheaper service with ads that will be rolled out later this year.