Neo2199 OP t1_j122ctp wrote on December 21, 2022 at 2:27 AM

> Satya Nadella keeps thinking bigger. Microsoft’s (MSFT.O) chief executive has been buying new businesses at an impressive clip. Look for him to add Netflix (NFLX.O) to the list in 2023.

> Since his 2014 promotion into the technology titan’s corner office, Nadella has embarked on a pricey shopping spree. It started with the $2.5 billion acquisition of the company behind the hit game Minecraft. Later, Microsoft bought LinkedIn for $26 billion and the speech recognition and artificial intelligence software developer Nuance for $20 billion. Activision Blizzard (ATVI.O) was by far the largest disclosed target, at $69 billion.

> Microsoft is busy fighting U.S. trustbusters for the right to absorb the “Call of Duty” creator. Putting it under the same roof as gaming console Xbox has led to regulatory concerns about market dominance. Even if Nadella loses out on the video-game company for competition reasons, however, owning Netflix would make strategic sense and probably be an easier sell in Washington and Brussels.

> The two companies are already closely aligned. Netflix chose Microsoft as its advertising partner for a new advertising-supported subscription service. Microsoft President Brad Smith also sits on the Netflix board. Part of the rationale for a deal is that Microsoft wants to offer a video-game streaming service over multiple devices.

rc042 t1_j127tri wrote on December 21, 2022 at 3:10 AM

>Part of the rationale for a deal is that Microsoft wants to offer a video-game streaming service over multiple devices.

This makes no sense for several reasons.

Microsoft has a game streaming service. It's built into their game pass service.
Netflix does not have the same skill set as their existing developers / engineers to design games for streaming. Netflix has a few games, but most of them are mobile apps, not streaming games.

IF Microsoft is looking to buy Netflix next year, it would likely be for their video streaming customers / service, and possibly the content production. They could offer discounts If you have both game pass and netflix, but thinking larger, I'd think they would use it to cross promote their upcoming games.

What if the new elder scrolls game also had a twelve episode anime launch on Netflix the week before the game launches. Or a fallout live action show. They own the IP rights to these now, and would be able to expand the brands.

CAM2772 t1_j129adt wrote on December 21, 2022 at 3:22 AM

Or if they wanted to build off popular Netflix properties such as a Stranger Things video game

ruinersclub t1_j12l5ol wrote on December 21, 2022 at 5:07 AM

Apple - Apple TV+

Amazon - Prime Video

Microsoft - Netflix / Gamepass

Radulno t1_j12tl18 wrote on December 21, 2022 at 6:39 AM

> Or a fallout live action show.

That's already happening with Amazon FYI. They don't really need to buy Netflix to make shows, they just need to associate with a production studio and do them, they'll find a distributor (Netflix is very into video games adaptation but others too). They already did for Cuphead and Halo btw

rc042 t1_j15zbtn wrote on December 21, 2022 at 10:29 PM

Yeah I was aware of the halo and Cuphead. I was not aware of the fallout show. Good to know.

You're right they don't need to, but if they have a platform they don't need to "shop it around" which removes some complexity.

I honestly don't think Microsoft needs to buy Netflix, and I don't see a major gain for them if they do. They could probably make a little more of a profit with Netflix than current Netflix (take all the cloud services in house to Azure and they get the family discount there) but I don't see much sense in them buying Netflix, unlike the author of the article.