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Ideas. Insights. Inspiration.

Netflix and Bing


Netflix and Bing, anyone?


Microsoft is going to power Netflix's upcoming ad-supported tier.


Strategically, choosing Microsoft makes sense for Netflix; unlike the other major bidders, Microsoft didn't have a competing media platform, as this CNBC article notes.


But I still thought Google would win this one.


Actually, I thought Google would seriously consider using some of the $133 billion cash it has on hand to simply acquire Netflix (which only has a $78.7 billion market cap as of today) and then proceed to integrate it into the Google machine.


(Read: monetize the heck out of it.)


They have some direct experience doing that, after all.


Remember, they paid $1.6 billion to acquire YouTube in 2016, then proceeded to monetize it. And it worked really, REALLY well: YouTube generated $28.8 billion for Google in 2021 alone, representing 11.2% of the company's total revenue last year. That's quite the ROI.


So might an acquisition offer have been a better play than bidding to be an advertising partner (and losing to a competitor)?


I guess we'll never know.


 

P.S. Thank you to everyone who sent me an email to offer condolences on the death of my grandfather after I published my last post. I appreciate your kind thoughts and words.

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