Microsoft is now likely to have its most significant marketing deal: The Redmond-based company will help develop ad-funded streaming access to streaming service Netflix. Google and Facebook are the market leaders in online advertising marketing. Netflix may not have wanted to be dependent on them.
Microsoft offers advertising marketing that is linked to Bing. This was able to attract the attention of the streaming giant. Microsoft has a track record of meeting our needs while we create new ad-supported products together. Microsoft offers the flexibility to innovate rapidly over time in both the technology and distribution fields.
In recent months, Netflix has been in discussions with potential partners to manage ad sales. Negotiations also took place with Google. Microsoft however offered the advantage that it does not have a Netflix-like offering. Peters noted that the collaboration was still in its infancy, and many questions remain unanswered.
Reed Hastings, Netflix’s chief executive, has opposed the introduction ad-funded subscription models for a long time. Recent developments have made it possible to overcome the resistance, as increasing competition makes it more difficult to attract new customers. Netflix is expected to offer a similar access option in the coming year. However, details of how this will work are still unknown.