HomeEntertainmentWho wins and loses...

Who wins and loses in the Netflix and Microsoft alliance? – Digikar


😍 2022-07-23 05:03:00 – Paris/France.

Netflix is ​​expected to integrate ads into a new cheaper subscription in 2022. The Streaming looks more and more like linear television.

Netflix doesn’t have a very dynamic 2022. But it also seems that there was too much desire to see it fall from the top into the trickle that it had built itself.

This week the red giant announced new results for the last quarter which stood out for having caused the largest loss of subscribers in its history: almost a million fewer users. However, the result of their actions was not downward, quite the contrary., because his predictions were even worse. Concretely, Netflix executives had predicted a loss of 2 million customers after learning earlier this year that some 200,000 had already canceled their plans.

Netflix was able to play the typical anchoring effect: prevent before a very bad result to, later, receive a lesser impact more gently.

Anyway, what hasn’t stopped since his bad news started this year is his continuous testing. From the plan to charge for sharing an account that has already been put into a test phase in several countries, to a decision that has long been denied by the company: to include a plan with advertisements.

Today we already know that Netflix has chosen Microsoft as a partner to set up a new economic subscription which will contain advertisements and which will surely arrive during 2023. Its objective is clear: to retain users who are ready to pay less thanks to a cheaper option, which can also be profitable in developing countries.

Most, What does this alliance allude to? Why Microsoft and not Google, which seemed to be the big candidate?

Netflix and Microsoft: an unexpected alliance

It seems, Google and Comcast were the main candidates to take over the Netflix businessgiven the maturity of its advertising technologies in Streaming and the scale of its video ad sales, Alphabet in its case with YouTube and Comcast with its channels. In contrast, Microsoft appeared to be on the verge of pulling out of that business until it acquired Xandr, the ad-tech arm of AT&T, last December to integrate it into its own services.

And soMoving on to the fine print, it was Xandr that Netflix relied on for its adsa previously independent brand as AppNexus that was acquired by AT&T in 2018.

The core of its Xandr message was that it only offered ad technology, as opposed to Google’s reputable link of owned-and-operated media to its ad stack. In other words, it wasn’t on both sides of the counter like it is now with Google.

This message may also have helped Microsoft to convince other candidates in the Netflix sector. Ultimately, Google owns YouTube and Comcast owns Peacock.two semi-direct and direct rivals of the platform, respectively.

The global reach of Microsoft’s business and operations could also have helped it outperform Google and Comcast, whereas 147 million of Netflix’s 222 million subscribers reside outside of the United States and Canada. This is important because Google in terms of advertising is still and may be subject to certain limitations due to a monopoly in territories such as the European Union; something that Microsoft, at least in the advertising business, seems more complicated.

But the pact also leaves a great responsibility to two not so expert actors.

A priori, it also seems clear that both come out of the agreement: Microsoft gets a shiny new cake in the advertising industry and Netflix shortens time by not developing its own advertising system, something that, however, was on the table for a temp.

But the doubts are what type of ads we are going to see on Netflix and how its algorithm is integrated —the one who tries to persecute us by offering us series he thinks we’ll like based on our story—with Xandr’s advertising inventory, which he would serve programmatically, also paying attention to brand requests , which would send their specific target .

One pertinent aspect that throws something into how the ads will be is that Netflix hasn’t commented on whether it will start selling direct advertising or move into programmatic.

Until now, Netflix had played with it a lot. product placementbut that had been his only approach to publicity. Xandr has both options: inventory and an ad bag to spread when there is no clear bidand we will have to see if the users of the platform suddenly find themselves with advertisements that do not concern us at all (as usually happens in traditional television) or, on the contrary, persecute us as programmatic does, as happens on the Web .

In both cases, it seems that the Streamingwhich came as a system that stopped piracy and empowered the user, is gradually giving way to uses that offline and internet media models, more typical of banners and pop-ups, already had. The more you pay now, the more ads you can avoid. Or maybe it’s all working out and people are talking about the latest ad they saw on Netflix soon.

SOURCE : Digikar

Do not hesitate to share our article on social networks to give us a solid boost. 🤗

- A word from our sponsors -

Most Popular

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More from Author

Quantum Computing Takes a Giant Leap With Light-Based Processors

Researchers have developed a groundbreaking light-based processor that enhances the efficiency...

New Mission Will Unlock the Ultraviolet Mysteries of the Universe

NASA’s UltraViolet EXplorer (UVEX), set for a 2030 launch, aims to...

A New Frontier in Sustainable Pest Management for Farmers

Engineers at the University of California San Diego have developed a...

10 Years Preparing for “Armageddon”

It is not uncommon for asteroids to hit Earth. In 2013,...

- A word from our sponsors -

Read Now

Quantum Computing Takes a Giant Leap With Light-Based Processors

Researchers have developed a groundbreaking light-based processor that enhances the efficiency and scalability of quantum computing and communication. By minimizing light losses, the processor promises significant advancements in secure data transmission and sensing applications. Credit: SciTechDaily.comA team of scientists has created a reprogrammable light-based quantum processor, reducing...

New Mission Will Unlock the Ultraviolet Mysteries of the Universe

NASA’s UltraViolet EXplorer (UVEX), set for a 2030 launch, aims to enhance our understanding of the universe by conducting a sensitive all-sky survey in ultraviolet light. Credit: SciTechDaily.comNASA’s UVEX mission, launching in 2030, will conduct a groundbreaking ultraviolet light survey of the entire sky, offering new insights...

A New Frontier in Sustainable Pest Management for Farmers

Engineers at the University of California San Diego have developed a novel form of pest control using nanoparticles derived from plant viruses to deliver pesticides deep into the soil, targeting parasitic nematodes at the root level of crops. This approach promises to reduce the need for excessive...