Netflix names Microsoft as tech, sales partner

Netflix Inc said on Wednesday it has selected Microsoft Corp as technology and sales partner for its planned ad-supported subscription offering, as the streaming giant looks to plug slowing subscriber growth by rolling out a cheaper plan, reports Reuters.
Shares of Netflix rose 2% to $178.06 on the news.
Netflix said in April that it would introduce a new, lower-priced version of its service in a bid to attract more subscribers. The announcement came as the pioneering subscription service posted its first subscriber loss in more than a decade, and projected deeper losses to come.
Chief Operating Officer Greg Peters said in a blog post that Netflix chose Microsoft because of its ability to innovate, as well as for its strong privacy protections.
"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," Peters said.
Microsoft is expected to power Netflix's ad sales. The software giant brought in $10 billion in ad revenue last year, selling ads on various services such as its Bing search engine.