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Netflix Chooses Microsoft as Partner for Lower-Priced Service With Ads

  • Microsoft generated $10 billion in advertising sales last year
  • Netflix to offer a lower-priced service with ads this year
Updated on

Netflix Inc. selected Microsoft Corp. as the technology and sales partner for its new advertising-supported streaming service, a key step in its effort to reignite subscriber and revenue growth.

Netflix plans to sell a cheaper, advertising-supported alternative to its flagship streaming service by the fourth quarter of this year. People who already subscribe won’t see the ads -- those will be for customers signing up for the new tier.