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Netflix teams up with Microsoft for ad-version of their streaming service
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14th July 2022
Netflix and Microsoft have teamed up to offer a cheaper version of Netflix, complete with adverts, in an attempt to stem a loss of subscribers.
In April 2022, shares in Netflix slumped after it reported its first subscriber loss in more than a decade
It's an interesting move - it reflects a response to the cost of living crisis which is cutting household disposable incomes and thus income elasticity of demand is relevant here - but it also risks diluting the brand, and might see subscribers opt for the cheaper rather than the premium version, adversely affecting profit margins.
We've added a little more comment here from Bloomberg
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