Is Netflix’s best hope an acquisition by Microsoft?
Summary
Disney has its theme parks, in-theater movie franchise business, toys, and myriad brand licensing deals; Apple has its hardware and software tie-ins; and Amazon is not only the leading e-commerce store, it’s also the cloud services provider of some of the biggest companies on Earth, including Netflix. That’s why the announcement of a deal with Microsoft to handle Netflix’s upcoming ad-supported offering has stoked speculation that the collaboration is a precursor to an acquisition. Microsoft could offer everything Netflix needs to survive against its challengers: a robust cloud architecture in Azure, and a widely used desktop and mobile software platform in Windows. “You go back a year ago with [Netflix’s] valuation, no one would ever think they’re going to be acquired just because it cost so much,” says Jon Christian, founder of tech consulting firm OnPrem. Microsoft’s old slogan, “Be What’s Next” (since abandoned), sounds a lot like Netflix’s catchphrase, “See What’s Next.” So, at least in marketing terms, a pairing of the two brands seems almost meant to be.
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