What are some potential risks for Microsoft in this partnership?

Some potential risks for Microsoft in this partnership could include the possibility of Netflix's continued loss of subscribers, which could affect the reach and effectiveness of the ads. Additionally, if the ad-supported version of Netflix is not well-received by users, it could negatively impact Microsoft's reputation.

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Why did Netflix choose Microsoft as its ad partner? On Netflix's Q2 earnings call, the company announced it lost 970,000 subscribers. This was Netflix's second straight quarter of subscription losses, after it lost 200,00 in Q1. To make up for this lost market share, Netflix needed a plan: and that plan became the launch of an ad-supported version. A few months later, Netflix had a partner to run these ads: Microsoft.

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How might this partnership influence the future collaborations between tech and streaming companies?

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The partnership between Netflix and Microsoft could set a precedent for future collaborations between tech and streaming companies. It could lead to more tech companies partnering with streaming services to provide ad-supported versions of their platforms. This could also encourage more tech companies to develop their own ad technologies to support such partnerships.

What could be the potential impact of this partnership on Netflix's growth strategy?

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The partnership with Microsoft could potentially have a significant impact on Netflix's growth strategy. By launching an ad-supported version, Netflix is aiming to make up for the lost market share due to subscription losses. Microsoft, being a renowned tech giant, could provide robust ad technology and a vast network, which could help Netflix reach a broader audience and increase its revenue. This could also attract users who are reluctant to pay for a subscription, thus boosting Netflix's user base and growth.

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