There is also an existing relationship between the two firms, with Microsoft’s president Brad Smith serving on Netflix’s board of directors, and Netflix chief exec Reed Hastings previously serving on Microsoft’s board of directors from 2007 to 2012. “The idea of independence for a platform the scale of Netflix can’t be underscored enough as its seeks to drive bias-free innovation to support a multi-billion-dollar ad business,” says Mark Zagorski, chief executive officer at DoubleVerify. Without a tie to another major video streaming platform, Microsoft also has no direct conflict of interest – unlike Comcast, which owns Peacock, or Google, which has YouTube. “It wants to be vigilant to protect customer data, particularly in markets where government scrutiny is growing.” According to Greg Kahn, chief executive officer of GK Digital Ventures: “Netflix has waited many years to launch an advertising tier, in part to maintain a premium customer viewing experience.”Īmong its competitors Microsoft is perceived to have a stronger dedication to privacy through its Parakeet initiative, Kahn says. Xandr’s first-party data-led approach is an ideal fit with Netflix’s privacy-focused business model. Its eventual sale perhaps shows how much success it had – but Xandr’s getting another swing at this mission now for Netflix. AT&T previously acquired Xandr (formally AppNexus) in 2018 to support the launch of its ad-funded video-on-demand (VOD) platforms. It’s thought Microsoft brought Xandr to help its ad business in the post-cookie era. Xandr is a modular ad stack platform that serves both the sell and buy-side. Jeff Sue, general manager of Americas at Mintegral, says Xandr will “uniquely help monetize CTV and console, so it is in an excellent position to deliver brand-safe advertising.” ![]() Microsoft’s recent acquisition of Xandr from AT&T was integral. “As a sales partner, Microsoft has the expertise and connections with all the buyers as it has monetized its own significant web and search properties over the past few decades,” Terry says. Hunter Terry, vice-president of solutions consulting and CTV commercial lead at Lotame, was one of the few who wasn’t shocked Netflix picked Microsoft over Comcast or “everybody’s frenemy” Google.
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