Netflix has partnered with Microsoft to provide customers with a lower-cost subscription plan that will include advertisements. The company has not disclosed how much it intends to charge subscribers for the new service. Netflix made the announcement after reporting its first subscriber loss in more than a decade and laying off hundreds of employees earlier this year. It lost 200,000 subscribers between January and March, compared to the 2.5 million analysts expected the company to add during that time period. Netflix now anticipates losing another two million subscribers between April and June.

The company announced that it had chosen Microsoft as its global advertising technology and sales partner to launch a lower-cost ad-supported subscription plan. Netflix’s chief operating officer, Greg Peters, stated that the company’s long-term goal was to provide more options for consumers while also providing advertisers with a premium, better-than-linear TV brand experience. Netflix never wanted advertisements. The company’s entire business model is based on monthly subscriptions. Nonetheless, Netflix executives have had to break their own rules. It comes after shocking data revealed that the company was losing subscribers. And, as the cost of living has risen, households have looked to their Netflix subscription as a potential source of savings. Investors are terrified. Netflix also faces stiff competition from Amazon Prime, HBO Max, Apple TV, and Disney+. There are far too many options and far too few paying subscribers.