Monday, October 29, 2012

Is Microsoft Buying Netflix?

With the release of their tablet, Surface, Microsoft may feel the need to have a content strategy, too.  For Apple, it is all about iTunes; for Microsoft, the rumor is that they are thinking of acquiring Netflix.  "Meanwhile, buying Netflix would be in keeping with Microsoft’s revamped philosophy on the Xbox 360, which treats the device more like an entertainment device and less like a video game console."  How Microsoft can use this for their competitive advantage remains to be seen.  Netflix has had a difficult time growing its streaming business while its DVD business drops.  That Microsoft can bring something new to Netflix is a big question mark. Netflix plays more like an agnostic player while Microsoft needs a content partner that can specifically make its own devices look and act superior.  My guess is that this is all rumor and not a strategic possibility.