Netflix X Microsoft Deal
Netflix is an entertainment services company in which members can view a selection of television shows, documentaries, feature films, and mobile games across a number of genres and languages with paid streaming memberships available in over 190 countries. Microsoft is the world's biggest supplier of computer software. It is a top supplier of internet services including search and cloud computing, video games, computer and gaming hardware, and other services.
Stock Change
Bargaining power
Netflix
200 million’ subscriber base
Great original content
Example: stranger things
Good standing in the industry
Microsoft
Experienced on ad-supported tiers
Example: was the exclusive advertising platform with Facebook
flexibility to innovate over time on both the technology and sales side
holds many diverse products
Investment in Xbox
Key Leverage points
Netflix
Less leverage side
BATNA: Google
Microsoft
More leverage side
Strong privacy protection
Acquired Xandr
Selling and serving ads on a global basis
Platform neutrality
Negotiation Strategy
The strategy used in the Netflix-Microsoft deal was that Netflix first said it wanted to recruit networks and partner with them. They chose Google and others but then decided that Google was also working with other companies, so they finally struck a deal with Microsoft for streaming services.
Conclusion
Microsoft and Netflix are great matches
Would expect successful data from Netflix next year
