Netflix is working with Microsoft to offer users a cheaper subscription plan, which means Netflix will add a new but cheaper plan to its existing plan and the new plan will show adverts.

Netflix has chosen Microsoft as its global advertising technology and sales partner to launch a “lower priced ad-supported subscription plan.”

Although Netflix never wanted ads on its platform, the decision to include ads became necessary after the company lost 200,000 subscribers between January and March.

One of the reasons for the decline is persistent inflation which has forced consumers to cut back on spending.

Also, Netflix competitors are increasing. The company is facing enormous competition from providers such as Amazon Prime, HBO Max, Apple TV and Disney +.

The company has not yet revealed how much it will charge its subscribers for the new service, but assured that the subscription will be rolled out later this year.

“It’s very early days, and we have much to work through. But our long-term goal is clear. More choice for consumers and a premium, better-than-linear TV brand experience for advertisers,” Netflix’s chief operating officer Greg Peters said in a statement.

The sources for this piece include an article in BBC.