Netflix and Microsoft team up for cheaper plan with adverts

Netflix has teamed up with Microsoft to offer a cheaper subscription plan to customers that will show adverts.

The streaming giant says the service will be an "addition" to its existing plans, which do not include adverts.

In April, shares in Netflix slumped after it reported its first subscriber loss in more than a decade.

The firm has not yet revealed how much it planned to charge customers for the new service.

Netflix said it had selected Microsoft as its global advertising technology and sales partner to introduce a "lower priced ad-supported subscription plan".

Microsoft has the proven ability to support all our advertising needs as we work together to build a new ad-supported offering

co-chief executive  said the company was in talks with other businesses to find ways to appeal to price-sensitive audiences.