Microsoft is teaming up with Netflix to offer an ad-based subscription plan

Netflix is moving full steam ahead with a new ad-supported subscription plan expected to launch later this year.

The streaming giant will team up with Microsoft to embed commercials in a cheaper version of its on-demand offering.

The move is a far cry from the Netflix 15 years ago, with the company previously refusing to ever include ads on its platform.

But times have been tough for the oversaturated streaming sector.

Earlier this year, Netflix disclosed it lost 200,000 subscribers in the first quarter of 2022 alone. This lead Netflix to concede the time has come for a less expensive option. Read more.

Netflix said the move is still in “very early days,” and has “much to work through” before the new service is introduced.

Meanwhile, landing the contract is a big deal for Microsoft. The multinational tech company has long been engaged in a tense battle with Google, the major force when it comes to digital advertising.