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Netflix rises as it announces Microsoft to be its global ad sales, tech partner

Jul. 13, 2022 2:44 PM ETNetflix, Inc. (NFLX), MSFTDIS, GOOG, CMCSA, MGNI, GOOGL, TTDBy: Chris Ciaccia, SA News Editor68 Comments

Netflix

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Netflix (NASDAQ:NFLX) said on Wednesday that it had picked Microsoft (NASDAQ:MSFT) to be its global advertising sales and technology partner as the streaming giant gets set to offer an advertising-supported tier.

"Microsoft has the proven ability to support

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Comments (68)

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Turk Malloy profile picture
I like the choice. MSFT is trying to break into the ad biz. So their rates are likely the lowest compared to other partners (e.g.TTD). NFLX chose wisely.
B
I can see this as a way for Microsoft to eventually acquire Netflix outright someday. The only space that Microsoft has not fully tapped into is direct-to-consumer. Gaming is a good start, but owning the number one streaming service will complete the chess piece.
b
MGNI is an SSP, they have massive support from brands world wide. Won’t they bring forward lots of Ad placements on NFLX ?
M
Microsoft should just buy whole Perion for some fat premium (which will cost just couple of billions) with their SORT for this.
i
ikavt
14 Jul. 2022
They are obviously going the targetted ad path with Microsoft's AI running in the backend. I can see Netflix being able to serve you such a tailored ad offering that you are going to love it.
Larry, a Futurist profile picture
I expect to see MSFT incorporate ads for Netflix content into Edge and Windows 11 (so users have more “Great Stuff” to click past when they unlock their desktops). Long AAPL.
C
@Larry, a Futurist i bought a pc and want badly to go back to apple for the reason you just stated. I turn it on and am bombarded by ads on my homescreen. Wtf!?
H
Hallu
14 Jul. 2022
@Chillybear Ads on a PC? Use Chrome
S
Netchix and Megacrap. The way to dusty death.
Shangrila Value profile picture
@Sid Debgupta we have an EXPERT here!
BuffteethrBlog profile picture
Netflix is NOT worth having month after month. We cancelled last year after struggling to find stuff regularly to watch. This was fine when it was cheap but at $19.99 no way. Now we just wait for a bunch of interesting shows subscribe for a month or two then cancel, rinse and repeat.
r
@BuffteethrBlog why not pay for the standard subscription? I don’t know anybody that has a premium.
nerd_rage profile picture
@rwinkel They shouldn't be charging a premium for HD, that should be standard and $10/month. NFLX's greedy pricing is one of its biggest problems. The content doesn't justify a premium price.
y
@nerd_rage I have a 77 OLED TV and I enjoy 4k and HDR coming out of it.
OverTheHorizon profile picture
Desperation
T
The comeback on Netflix starts right after their earnings which I expect to be the trough.
B
Makes sense as Microsoft doesn't pose a direct competition and they will try to tap into Microsoft's gaming business to help with theirs.
i
Bullish for $NFLX. Although it won't reflect in their earnings, it's nice to know that this may change guidance to a more positive future. Regardless of what you think about ads, I would assume this would only reflect on the lower tier memberships, and as a company, it's better to have that business than no business at all. And with the amount of content they have, I'm sure there are some that don't mind watching a few ads.

$20 for the premium service doesn't break the bank for most people and even a $10 ad based membership is tolerable. IMO if $NFLX gets into the sports streaming services, it'll be another positive. In a time where people still need their entertainment fix and are trying to save money by staying home and going out less often, I see $NFLX trending towards the upside as we know inflation is still going to be around for the foreseeable future.
nerd_rage profile picture
@iamWillie $20 is a lot if you want other services in the mix. At $20, NFLX is 4x the price of AppleTV+ yet the quality is certainly not 4X better or any X better.
T
@nerd_rage there is 50x more content though.
BuffteethrBlog profile picture
@Tdog88 Most of their content suck though, which was fine when they were cheap.
K
Baffling and stupid decision. Do these guys really want to go down with the big brother ship??
T
@KaiRoMa what??? This is about Netflix adding a lower cost ad tier. It’s a win-win for both companies. What ship is going down?
OverTheHorizon profile picture
@KaiRoMa advertising budgets are shrinking. Why advertise when nobody can afford to buy anything?
R
Stop paying Talent 9 figure salaries and dump the ads.
Shangrila Value profile picture
Great news for $PERI as well.
B
@Shangrila Value Is it? (genuine question) I thought their partnership was based on Bing Search
Shangrila Value profile picture
@Buythetip I think they are ads suppliers as well.
C
@Shangrila Value Seems to me like this is a win for Xandr. Why would Microsoft farm it out when they just bought an AdTech company? This is exactly the type of thing Xandr does well.

If anything I’d say that over time Microsoft will shift their existing business with Perion business to Xandr since I believe they provide web based ad services as well as video.
atomheart profile picture
Had to sell my put based on this garbage announcement 😡
Who Moved My Cheese profile picture
Raise monthly fees and introduce endless commercial breaks. Man I love torrents.
q
So they put some of their stuff on Azure and call this a global tech partnership?
c5then profile picture
Looking forward to ads in the Netflix shows and the regular BSOD during the movies.
s
The rich get richer.. support the little guys at $MGNI - oh well
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