Netflix Inc. has selected Microsoft Corp. as a sales and technology partner for its new ad-supported streaming service. Netflix plans to sell a cheaper, ad-supported alternative to its flagship streaming service by the fourth quarter of this year.

The company announced plans to enter the advertising business after reporting a decline in its clients.

(We recommend you consult: Amazon reduced its product offer by half)

Slowing growth has forced Netflix to look for new ways to attract customers and revenue. Recently, in a blog post, Netflix revealed few details about its plans, though it has been meeting with potential partners in recent months.

(Also read: Microsoft chooses Uruguay to host the first AI laboratory in the region)

Last year, Microsoft generated $10 billion in ad sales, and in December it bought Xandr, the advertising business of AT&T Inc. “Microsoft has the proven ability to support all of our advertising needs as we work together to create a new ad-supported offering”Netflix COO Greg Peters said in the blog post.

“More importantly, Microsoft offered the flexibility to innovate over time on both the technology and sales sides, as well as strong privacy protections for our members.”

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