Netflix announces cheaper version with ads

(CNN) - Netflix and Microsoft announced Wednesday they are teaming up to create a cheaper, ad-supported version of the streaming service.

Netflix CEO Reed Hastings resisted an ad-supported option for years, but the company is going through one of the roughest periods in its 25-year history.

Netflix says it lost 200,000 subscribers in the first quarter of 2022 and expects to lose another 2 million in the second quarter.

The service currently has 221.6 million subscribers globally.

The New York Times reported in May that Netflix told employees the ad-supported version may come by the end of 2022.

The company did not say how much the ad-supported plan will cost per month. Netflix currently offers three ad-free subscription levels based on video quality and resolution, ranging from $9.99 per month to $19.99 per month.

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