Surprise Netflix-Microsoft Ad Partnership May Be the First Step in a Larger Strategy

The streamer shocked the industry in bypassing Amazon, Google, Comcast and Roku for the Xbox developer.

Netflix’s announcement that it had selected Microsoft as its global advertising technology and sales partner came as a shock to the media industry, but the decision could be the first step in a larger strategic battle plan for the company.

Since Netflix announced in April that it would be introducing an ad-supported tier, many assumed that the existing infrastructure of major players such as Google, Amazon, Comcast and Roku would be natural fits for the company. Microsoft, while boasting a $10 billion advertising business and the ad-support system company Xandr, is considered a smaller player by comparison. Yet the potential synergies between the two companies and the lack of direct competition may pave the way for even larger moves ahead.

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