Netflix has teamed up with Microsoft to offer customers a lower-cost subscription plan that includes advertisements. The company has not stated how much the new service will cost subscribers. Netflix announced this after reporting its first subscriber loss in more than a decade earlier this year and laying off hundreds of employees. Between January and March, it lost 200,000 subscribers, compared to the 2.5 million analysts predicted the company would gain during that period. Netflix now expects to lose an additional two million subscribers between April and June.

The company announced the selection of Microsoft as its global advertising technology and sales partner to launch a lower-cost ad-supported subscription plan. Greg Peters, Netflix’s chief operating officer, stated that the company’s long-term goal was to give consumers more options while also providing advertisers with a premium, better-than-linear TV brand experience. Netflix has never preferred advertisements. The entire business model of the company is based on monthly subscriptions. Despite this, Netflix executives have been forced to break their own rules. It follows the release of shocking data revealing that the company was losing subscribers. Furthermore, as the cost of living has risen, households have looked to their Netflix subscription as a possible source of savings.