Microsoft Just Scored a Massive Win for Its Advertising Business
Microsoft (NASDAQ: MSFT) was the surprise winner among those vying to manage Netflix's (NASDAQ: NFLX) future advertising business. The streaming company plans to launch an ad-supported tier of its service in the near future. The SVOD leader had been in talks with companies more associated with digital video advertising like Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google and Comcast's (NASDAQ: CMCSA) NBCUniversal, which operates Freewheel.
While the choice of Microsoft has some advantages for Netflix, it could provide a more meaningful boost to Microsoft.
One important reason Netflix likely opted for Microsoft is that there's no big conflict of interest. Unlike Google and Comcast, which have their own video streaming businesses, Microsoft doesn't operate a direct competitor to Netflix.
Source Fool.com
