3 ms·

I fail to see why buying Netflix would help Microsoft? Microsoft is currently in the process of spending billions to acquire Activision. Unless there is a strea

I fail to see why buying Netflix would help Microsoft? Microsoft is currently in the process of spending billions to acquire Activision. Unless there is a streaming patent MS wants for game pass cloud, it doesn’t seem like it fits into what MS is doing right now. Sure it would get them a spot in the streaming platforms, but I’m sure MS is already making money with azure hosting those platforms.

thefounder 4y ago
Maybe Microsoft is trying to get more serious into advertising(i.e compete with youtube, youtube tv).
dtagames 4y ago
You've accidentally hit it on the head. MS is the only major cloud provider without a video platform. Amazon has Prime and Google has YouTube. Since they own Azure, MS can stream from it without paying anyone else a profit. This could allow them to be more competitive than Netflix can be on its own.
- angryasian 4y ago
  why would they even need to get in the streaming service anyways ? They do have gamepass which stream games and is the #1 in that area.
  - dtagames 4y ago
    Because streaming makes money. In almost every industry, two big players make most of the money and the others divide the rest between them. In streaming, Netflix is a biggie. If MS owned them and cut the costs (and, hopefully, changed the content), it could be bigger. It's a theory anyway.
    - angryasian 4y ago
      interesting, getting into an area of business just because "it makes money" doesn't make a lot of sense. All of these streaming businesses need content. They are large money pits as well. Look at the spend on original content every year. What does it really drive in addition for MS ? Amazon did it as another benefit for Prime members. Google already has Youtube. Apple pushes hardware. Just curious what the net benefit for MS would be. Their xbox sells well alone, not sure if it makes a difference.
      - dtagames 4y ago
        The big moneymaker in Xbox has always been content, not the boxes. At first, those were even sold at a loss. In this scenario, Xbox just gives MS another box on which to stream whatever content they offer -- and one that is not controlled by Roku or Samsung. It could be argued that "because it makes money" is the only valid reason to go into a business. Certainly Microsoft can afford to buy any content at all that comes to market, just like Amazon and Netflix do. There's no special recipe here and in the age of cord cutting, consumers are extremely fickle about where they stream. MS also has the unique experience of vast profits from Xbox Game Pass, another decision which has costs them millions in content acquisition (by buying studios) yet returned many more millions as profits from recurring monthly subscriptions. Sound familiar? This is Netflix's model, too, MS has shown they can already play that game profitably.
ab_testing 4y ago
Google has YouTube, Apple has Apple TV, Amazon has Prime. Microsoft is the only trillion dollar company with no streaming service and I think they want one .
- angryasian 4y ago
  why would they even need to get in the streaming service anyways ? They do have gamepass which stream games and is the #1 in that area.
- happymellon 4y ago
  Microsoft have had several media stores over the years. They had Zune but killed it for bad reasons. I wouldn't like the chances of Netflix or Spotify, MS are not a media services company and have shown repeatedly that this is not something their corporate structure can handle.

thefounder 4y ago

Maybe Microsoft is trying to get more serious into advertising(i.e compete with youtube, youtube tv).

dtagames 4y ago

You've accidentally hit it on the head. MS is the only major cloud provider without a video platform. Amazon has Prime and Google has YouTube. Since they own Azure, MS can stream from it without paying anyone else a profit. This could allow them to be more competitive than Netflix can be on its own.

angryasian 4y ago
why would they even need to get in the streaming service anyways ? They do have gamepass which stream games and is the #1 in that area.
- dtagames 4y ago
  Because streaming makes money. In almost every industry, two big players make most of the money and the others divide the rest between them. In streaming, Netflix is a biggie. If MS owned them and cut the costs (and, hopefully, changed the content), it could be bigger. It's a theory anyway.
  - angryasian 4y ago
    interesting, getting into an area of business just because "it makes money" doesn't make a lot of sense. All of these streaming businesses need content. They are large money pits as well. Look at the spend on original content every year. What does it really drive in addition for MS ? Amazon did it as another benefit for Prime members. Google already has Youtube. Apple pushes hardware. Just curious what the net benefit for MS would be. Their xbox sells well alone, not sure if it makes a difference.
    - dtagames 4y ago
      The big moneymaker in Xbox has always been content, not the boxes. At first, those were even sold at a loss. In this scenario, Xbox just gives MS another box on which to stream whatever content they offer -- and one that is not controlled by Roku or Samsung. It could be argued that "because it makes money" is the only valid reason to go into a business. Certainly Microsoft can afford to buy any content at all that comes to market, just like Amazon and Netflix do. There's no special recipe here and in the age of cord cutting, consumers are extremely fickle about where they stream. MS also has the unique experience of vast profits from Xbox Game Pass, another decision which has costs them millions in content acquisition (by buying studios) yet returned many more millions as profits from recurring monthly subscriptions. Sound familiar? This is Netflix's model, too, MS has shown they can already play that game profitably.

ab_testing 4y ago

Google has YouTube, Apple has Apple TV, Amazon has Prime. Microsoft is the only trillion dollar company with no streaming service and I think they want one .

angryasian 4y ago
why would they even need to get in the streaming service anyways ? They do have gamepass which stream games and is the #1 in that area.
happymellon 4y ago
Microsoft have had several media stores over the years. They had Zune but killed it for bad reasons. I wouldn't like the chances of Netflix or Spotify, MS are not a media services company and have shown repeatedly that this is not something their corporate structure can handle.