Microsoft's acquisition of Xandr benefits Netflix in several ways. Firstly, it gives Netflix access to Xandr's connected TV business and the Xbox platform, expanding its userbase. Secondly, Microsoft is the only ad tech giant without a streaming library, which makes it a suitable partner for Netflix. Lastly, Netflix's operating officer Greg Peters mentioned that choosing Microsoft offered flexibility to innovate over time on both the technology and sales side, and provided strong privacy protections for their members.

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The partnership with Microsoft aligns with Netflix's business strategy in several ways. Firstly, it provides Netflix with access to Microsoft's ad platform, which is the fourth largest in the market. This could potentially increase Netflix's revenue through advertising. Secondly, Microsoft's recent acquisition of Xandr, a consumer ad platform, gives Netflix access to connected TV business and the Xbox platform, expanding its userbase. Lastly, Netflix's operating officer Greg Peters mentioned that Microsoft offers flexibility to innovate over time on both the technology and sales side, and strong privacy protections for their members, which aligns with Netflix's strategy to protect its subscribers from invasive ads.

The deal could potentially have a significant impact on Microsoft's ad platform revenue. By acquiring the consumer ad platform Xandr from AT&T, Microsoft has expanded its reach to include Xandr's connected TV business, the Xbox platform, and now, Netflix's userbase. This broadened access for marketers could lead to an increase in ad revenue. Furthermore, Microsoft's unique position as the only ad tech giant without a streaming library could also be a factor in attracting more advertisers. However, the exact impact would depend on various factors including the success of the integration and the response from Netflix's subscribers.

Netflix chose Microsoft for its advertising platform due to several reasons. One of the key reasons was the flexibility and innovation that Microsoft offered. This allowed Netflix to evolve and adapt over time on both the technology and sales side. Furthermore, Microsoft's strong privacy protections were appealing to Netflix as it prioritized the protection of its subscribers from invasive ads. This strategic choice also benefited from Microsoft's recent acquisition of consumer ad platform Xandr, which expanded marketers' access to connected TV business, the Xbox platform, and Netflix's userbase.

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