As per a statement on Twitter by Satya Nadella, Chairman and CEO of Microsoft Corporation, Netflix's new ad-supported tier will be rolled out as the result of a partnership with Microsoft. Industry analysts theorise that this may lead to lower costs of subscriptions.
Back in April 2022, Netflix CEO Reed Hastings publicly stated that the streaming giant was "quite open" to the ad-based subscription model. This new ad-based subscription announcement was immediately followed by a loss of 200 thousand subscribers and a massive hit to the stock evaluation of Netflix.
A post on Netflix's official website says "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. We're excited to work with Microsoft as we bring this new service to life."
No dates or price points have been announced as of yet.