Streaming service Netflix will partner with Microsoft to launch a new ad-supported subscription offering. According to Netflix COO Greg Peters, the new subscription plan will be cheaper than existing plans.

The company announced that it would introduce a new, lower-priced subscription plan with ads in April. Now, the streaming giant has selected Microsoft as its global advertising technology and sales partner.

Netflix notes that the new subscription is still in the early stages, and they have a lot to work on.

"But our long term goal is clear. More choice for consumers and a premium, better-than-linear TV brand experience for advertisers. We're excited to work with Microsoft as we bring this new service to life," Netflix COO Greg Peters writes in the blog post.

Netflix has been talking to other potential partners in recent months to launch a subscription with ads, including Google and Comcast, but chose Microsoft for its "flexibility to innovate over time" and "strong privacy protections."

A launch date for the new tier has not been announced yet, but the company is rumored to launch the new subscription by the end of 2022.