Netflix recently announcedPartnering with Microsoft, and is expected to use Microsoft's technology to create a subscription plan with advertising and lower costs. However, Laura Martin, a senior analyst at Needham & Company, a wholly-owned investment advisory firm of The Needham Group, believes that the relationship between Netflix and Microsoft may not only be an advertising technology cooperation, but may even include the possibility of Netflix being acquired by Microsoft.
According to Laura Martin's analysis and assessment, if Netflix wants to find a suitable advertising technology partner, it can choose Google, which has a vast advertising system and resources, or cooperate with Roku, which has long been engaged in TV and set-top box advertising, or partners such as FreeWheel, which has long been engaged in online advertising, and digital advertising company Magnite, rather than choosing Microsoft, which has relatively little development in advertising technology.
Therefore, Laura Martin speculates that Netflix's cooperation with Microsoft may just be preparation for a future acquisition. In addition to deepening cooperation with Microsoft, there is a greater opportunity to emulate the past cooperation model between Netflix and game companies such as Ubisoft and present more Microsoft Xbox game works in the form of audio and video content. At the same time, Netflix's original series may also further attract more gamers through the form of games.
If acquired by Microsoft, it may also be able to solve Netflix's current problems such as declining user numbers and reduced revenue. At the same time, it can also make its streaming video service operate more stably by leveraging Microsoft's Azure cloud services located around the world.
However, neither Microsoft nor Netflix responded to the analysis results, and Laura Martin expects Microsoft toCompleted acquisition of Activision BlizzardAfter that, we will choose an appropriate time to announce the acquisition of Netflix.
