Why Netflix chose Microsoft as ad partner in 'upset' win - AdAge.com

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“I have to imagine, in choosing Microsoft, Netflix was concerned about the conflicts they would potentially expose themselves to with other key partners,” said Matt Spiegel, executive VP of media and entertainment vertical at TransUnion, global information and data company.
Choosing Microsoft, “makes complete sense” in that light, Spiegel said.
And even though Microsoft is not known for its ad serving technology, it has pieces of an ads business that could plug into the future of gaming, the metaverse, commerce and entertainment.
Microsoft is also buying Activision Blizzard in a $68.
Netflix recently launched a game studio, showing its interest in the genre, and Microsoft owns Xbox, one of the only premium consoles.

Why Netflix chose Microsoft as ad partner in 'upset' win - AdAge.com

In the end, the deal may have come down to Microsoft not being an overt Netflix rival. Google owns YouTube and FreeWheel is owned by Comcast, making them direct streaming competitors. And even though Microsoft is not known for its ad serving technology, it has pieces of an ads business that could plug into the future of gaming, the metaverse, commerce and entertainment. Netflix recently launched a game studio, showing its interest in the genre, and Microsoft owns Xbox, one of the only premium consoles. Microsoft is also buying Activision Blizzard in a $68.7 billion deal announced in January. “I have to imagine, in choosing Microsoft, Netflix was concerned about the conflicts they would potentially expose themselves to with other key partners,” said Matt Spiegel, executive VP of media and entertainment vertical at TransUnion, global information and data company. Choosing Microsoft, “makes complete sense” in that light, Spiegel said. The deal is a coup for Microsoft because its footprint in connected TV has been light. Now, Microsoft has landed Netflix and its desirable potential ad inventory. Netflix is seen to have some of the highest quality programming, with blockbusters such as “Stranger Things” and “Inventing Anna,” and reality programming such as “The Circle.” “Marketers looking to Microsoft for their advertising needs will have access to the Netflix audience and premium connected TV inventory,” said Mikhail Parakhin, Microsoft’s president of web experiences. “All ads served on Netflix will be exclusively available through the Microsoft platform.” The terms of the deal were not disclosed. Advertising experts said that it is likely that Microsoft gave Netflix some revenue guarantees as part of the transaction. In these types of deals, ad partners are known for setting a floor on the amount of ad revenue they are likely to generate. Netflix declined to comment for this story.
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