Popular subscription streaming service and production company; Netflix, has entered into a partnership with American multinational technology corporation; Microsoft.
The Chief Operating Officer (COO) of Netflix; Greg Peters made it known on the 13th of July 2022 via a statement that, “Microsoft has the proven ability to support all our needs as we together build a new ad supported offering. More importantly, Microsoft offered the flexibility to innovate over time on both the technology and sales side, as well as strong privacy protections for our members.”
Netflix which is the home of the widely popular series; Stranger Things has reportedly been having difficulties with regards to gaining subscribers and retaining its already existing subscribers. In April of 2022 it made it known that it will begin the launch of an additional tier which will be ad supported after initially refusing to take that step for a number of years.
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The Co-Chief Executive Officer (CEO) of Netflix has publicly resisted the calls to place commercials or other forms of promotions on the streaming platform. He however made it known during the company’s recent prerecorded earnings conference call that it will make a lot of sense to provide its users a subscription option that is cheaper.
It is expected that the new subscription tier has the potential to generate significant revenue for Netflix at a time when it continues its efforts to increase its user base.
The subscription streaming service and production company which was launched on the 29th of August 1997 has in recent times, its funding on content specifically original content. It is believed that the streaming service had to resort to increasing its subscription prices in order to generate said funds.
Netflix made it known that although the increases in pricing were helping to increase revenue generated said price increases were also responsible for the loss of a total of 600,000 subscribers in Canada and the United States (US) during the just concluded quarter.
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Over the past couple of months Netflix has carried out a number of interviews with various potential partners as it prepared to unveil the new subscription tier before the end of 2022. The potential partners include Comcast and Google.
While Comcast owns Peacock by NBCUniversal and Google owns YouTube Microsoft, does not operate or own and streaming service that could compete with Netflix.
Netflix’s Chief Operating Officer (COO); Greg Peters has made it known however, that the efforts with respect to the advertisements subscription tier are still in the, “very early days,” adding that there is still “much to work through.”
Netflix will be releasing its quarterly earnings on Tuesday the 18th of July 2022. The company had already made it public knowledge that it could potentially lose around 2 million subscribers over the course of the second (2nd) quarter of the year.
Since the beginning of 2022 shares for Netflix have dropped by as much as over seventy (70) percent. On Wednesday the 13th of July 2022 the stocks for the company experienced a boost of 1.5 percent at a time when the markets in general were experiencing a down trend after the inflation information for June of 2022 was significantly higher than anticipated.
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The partnership with Netflix will be a major boost for the advertising side of Microsoft. It cu the way Brit contributes a total of six (6) percent of the company’s revenue.
Microsoft’s search engine; Bing where it generates revenue by showing ads in the search results, is not as widely used as Alphabet’s Google search engine. Microsoft left the display advertisements markets in 2015 after American web portal and online service provider; AOL took over that aspect.
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