2022 wasn’t a good year for Netflix. The company lost a massive chunk of its user base and also projected that it had reached the maximum number of possible users. Then came the news of cracking down on password sharing and charging more if someone wanted to do so. It finally embraced advertising and partnered with Microsoft to push a subscription plan that would cost less but show ads.
But that’s only the beginning of the collaboration between the two companies. As per a Reuters report, Microsoft is eyeing to acquire Netflix. The popular operating system manufacturing company already has prized possessions like LinkedIn and Minecraft.
Why does Microsoft want to buy Netflix?
Here are the following reasons why Microsoft could buy Netflix
- Netflix is undoubtedly a lucrative platform to own and operate. It has one of the largest audiences globally and even penetrates target markets of smaller countries. Microsoft loves to acquire platforms that have a huge consumer base (LinkedIn, Minecraft) simply because it has the moolah to make such an extravagant purchase.
- Apart from reaping profits from the service because of the growing content demand, Microsoft can bundle the service with its Xbox services. Game Pass is already a hit venture, and there is nothing better to hook gamers to the platform with streaming services when they aren’t playing.
- Thus, shifting to Game Pass could make a lot of sense for many because someone in the family loves games, and they could get the best of both the entertainment genres (gaming and streaming content).
- Netflix also offers some games on its platform and could facilitate game streaming via its platform too. Microsoft’s acquisition could also bring down the subscription cost to some extent as the company tries to acquire more users.
Image credit: Netflix
If this happens, Microsoft could become the only company offering gaming and streaming. However, the decision to keep them together or offer separate services depends on Microsoft. The company is also trying to acquire Activision Blizzard, but due to monopolistic speculations, the deal hasn’t happened yet. The regulators want to take the matter to court, and Microsoft believes that the courts will understand its thought process behind the acquisition.