Netflix

Netflix chose Microsoft as its advertising partner, a questionable choice. According to specialist Laura Martin, this merger would not be trivial and could lead to the platform being taken over by the computer giant.

Over the past year, tech giants like Amazon, Google, and Microsoft have spent billions on it diversify their activities. One of the most notable announcements is the acquisition of Activision-Blizzard by the company behind Windows. Far from the failures of the 2000s (Windows Vista, Zune, Windows Phone…), Microsoft has regained its grand and grand ambitions. The Redmond-based company was recently selected as an advertising partner by Netflix.

Specifically, the famous streaming platform will use Microsoft technology for its future formula with advertising. A real turning point for Netflix, which had previously refused to give in to the sirens of “advertising”. Although the service has yet to release any details about its ad-supported offering, Microsoft’s choice is surprising. Netflix’s advertising market with around 221 million subscribers is large and there were many interested parties. According to the Wall Street Journal, Google, Comcast, and even Roku have all been in talks with the king of video streaming.

In the face of these companies, the company founded by Bill Gates even seemed like an outsider. While the Microsoft name has international appeal, the giant has not made a name for itself in the advertising segment. for netflix, However, Google or Comcast didn’t look like ideal partners for this project.. These two companies have competing video streaming platforms. Comcast through its subsidiary NBCUniversal and Google with YouTube. Admittedly, the Mountain View company’s service isn’t a direct competitor, but it does compete in the video market.

Conversely, Microsoft is not present in this segment and has a certain expertise in online advertising. A perfect profile for Netflix that also shares a common passion with Microsoft: the videogame. If it’s too early to envision a partnership in this space, it’s clear that the two giants are diversifying and embracing gambling. In reality, this rapprochement could well be the harbinger of one Acquisition of Netflix and Microsoft. At least that is the thesis of the analyst Laura Martin.

A potential takeover of Netflix and Microsoft isn’t a new idea

This specialist in the platform’s financial movements believes the agreement could be hiding “a hidden agenda” between the two companies. “Netflix may be looking for one [porte de] Exit “says the Needham analyst in an interview with Yahoo Finance. “Netflix is ​​trying to approach Microsoft in hopes that after Microsoft digests the acquisition of Activision, Microsoft will turn around and then buy Netflix.”, she adds. The analyst wonders about Netflix’s decision to target Microsoft in the area of ​​advertising technologies.

She believes Microsoft will take time and Netflix’s ad-supported offering won’t arrive for several months. Though Netflix hasn’t announced a launch date yet, it wouldn’t come until the third quarter of 2023.

On the other hand, the company run by Satya Nadella would be the only one able to pay it $100 billion needed for a possible takeover of Netflix. A hefty sum, but Microsoft has proven it’s ready to pull out its checkbook; as evidenced by the $68.7 billion acquisition of Activision-Blizzard.

There is currently no official element supporting this possibility. We only know that the two companies have a good relationship for many years. The Xbox 360 was the first console to host the Netflix application in HD; while the platform used Microsoft’s Silverlight technology for Watch Instantly.

Furthermore, this is not the case This isn’t the first time a Microsoft takeover of Netflix has made the rounds on the internet. As early as 2009, the idea was gaining ground and an analyst revived the possibility in 2018. Netflix wasn’t ultimately acquired, but the platform is having a rough season.

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