Netflix Inc and Microsoft said on Wednesday the latter has been selected as technology and sales partner for the streamer’s planned ad-supported subscription offering.

The streaming giant is looking to plug slowing subscriber growth by rolling out a cheaper plan supported by ad revenues, according to news reports filed by Reuters and CNBC.

“Microsoft has the proven ability to support all our needs as we together build a new ad supported offering. More importantly, Microsoft offered the flexibility to innovate over time on both the technology and sales side, as well as strong privacy protections for our members,” Netflix COO Greg Peters said in a statement.

After losing subscribers for the first time in a decade and projecting a two million decline in the second quarter, Netflix said in April that it was seriously looking at a service with advertising.

Peters said the ad-efforts are still in the “very early days”, with “much to work through.”

Netflix Inc and Microsoft said on Wednesday the latter has been selected as technology and sales partner for the streamer’s planned ad-supported subscription offering.

The  streaming giant is looking to  plug slowing subscriber growth by rolling out a cheaper plan supported by ad revenues, according to news reports filed by Reuters and CNBC.

“Microsoft has the proven ability to support all our needs as we together build a new ad supported offering. More importantly, Microsoft offered the flexibility to innovate over time on both the technology and sales side, as well as strong privacy protections for our members,” Netflix COO Greg Peters said in a statement.

After losing subscribers for the first time in a decade and projecting a two million decline in the second quarter, Netflix said in April that it was seriously looking at a service with advertising.

Peters said the ad-efforts are still in the “very early days”, with “much to work through.”

The streamer, which had rolled out as a test case an ad-supported cheaper subscription plan in some countries, got mixed reaction from consumers.

Netflix is slated to release quarterly earnings Tuesday.

CNBC said the new business is a boon for Microsoft’s advertising division, which contributes six percent of the software company’s total revenue.

streamer, which had rolled out as a test case an ad-supported cheaper subscription plan in some countries, got mixed reaction from consumers.

Netflix is slated to release quarterly earnings Tuesday.

CNBC said the new business is a boon for Microsoft’s advertising division, which contributes six percent of the software company’s total revenue.