Why Did Netflix Pick Microsoft's Video Advertising Platform?
There's no going back now. Netflix (NASDAQ: NFLX) is committed to its idea of adding a lower-priced subscription plan supported by digital advertising, and the company has tapped Microsoft (NASDAQ: MSFT) to help with ad sales and the technical side of the advertising platform.
While Microsoft clearly has the cloud-computing muscle and sheer business scale to assist Netflix in its ad-sales project, it was far from the only option in a crowded ad-platform market. Disappointed investors dropped share prices of video-based advertising experts Magnite (NASDAQ: MGNI) and The Trade Desk (NASDAQ: TTD) by 10.4% and 6.7% on the news, respectively. Many also saw longtime Netflix collaborator Roku (NASDAQ: ROKU) as a sensible choice of ad-platform partners, and that stock dove 5.4% on Thursday. After all, several of these companies have reportedly been discussing potential advertising deals with Netflix recently.
This move made me want to explore two critical questions:
Source Fool.com
