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Microsoft's acquisition of Xandr played a significant role in Netflix's decision. The acquisition gave Microsoft access to Xandr's connected TV business, the Xbox platform, and, with the new deal, Netflix's userbase. This expanded reach was attractive to Netflix. Additionally, Microsoft's lack of a streaming library was a plus, as it meant there was no direct competition. Netflix's operating officer, Greg Peters, also 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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So how did Netflix choose Microsoft?Microsoft manages the fourth biggest ad platform on the market with nearly $15 billion in annual revenue across LinkedIn job postings and Bing searches. But crucially, Microsoft acquired a consumer ad platform Xandr from AT&T just last month. This new deal would give marketers access to not only Xandr's connected TV business, but the Xbox platform, and now, Netflix's userbase. Also, Microsoft just so happens to be the only ad tech giant without a streaming library, which, didn't hurt. Netflix operating office Greg Peters also said choosing Microsoft "offered flexibility to innovate over time on both the technology and sales side" and offered "strong privacy protections for our members." Netflix's subscribers are its moat, so it wants to protect them from invasive ads or more will unsubscribe.
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