The Clap
Netflix (NASDAQ: NFLX) has chosen Microsoft (NASDAQ: MSFT) to help it build its ad-supported subscription tier.
Backstory
Netflix lost some 200,000 subscribers in Q1-2022, & is struggling to retain, let alone add, subscribers.
The company announced several initiatives to tackle the loss of subscribers, including adding an ad-supported subscription tier.
Why this Matters
Microsoft’s advertising segment makes up around 6% of total revenue, & this deal is a big boost.
As for Netflix, the streaming giant is set to report its Q2-2022 earnings next Tuesday, & eyes will be on whether they actually lose 2 million subscribers like they forecast last April.
