Netflix And Microsoft Stock In The ‘Red’ Despite New Collaboration
Netflix Inc. (NYSE: NFLX), a streaming platform, has recently partnered with Microsoft Corporation (NYSE: MSFT), a tech giant, to introduce a cheaper subscription package that would include advertisements. This move is taken to attract subscribers and customers to the streaming giant that has been running in losses lately. The Netflix and Microsoft Collaboration will surely prove to be beneficial for the streaming behemoth’s customers.
When the cheaper plan will be launched it will enable users to have better options to access the content on Netflix. Microsoft comes into the picture for the purpose of running advertisements for the customers subscribing to this plan. All ads streamed on Netflix will be exclusively available and accessible through the Microsoft platform. The announcement made today also highlights the latter’s effort toward consumer privacy to protect their information.
Greg Peters, COO of Netflix, remarked:
Mikhail Parakhin, President of Web Experiences, Microsoft commented:
The partnership initiated today is the total opposite of the streaming giant’s refusal to add commercial advertisements on the platform since its commencement about 15 years ago. The platform had announced this plan of running ads about three months ago after it lost over 2,00,000 subscribers. Moreover, cut-throat competition and rising inflation pressures made the situation worse. This is why they are introducing a cheaper alternative for people with high budget constraints.
The press release by Netflix mentioned that Microsoft has the ability to support all their advertising requisites and that is why this partnership was initiated. Also, the latter offered flexibility to aid in the development of the technology and sales sectors of the former. Another thing that made the collaboration happen was strong privacy protection provisions for the streaming giant’s customers.
Netflix And Microsoft Stock Performance
Both Netflix and Microsoft didn’t see an upside in their stock performance. The NFLX stock was down by 0.75% and was priced at $175.24 (losing 1.32 points) in the premarket trading session at the time of writing. The market capitalization of the stock stood at $78.44 billion. The stock is also nearing its 52-week low of $162.71. In contrast, the NFLX stock was up by 1.21% and closed at $176.56 (gaining 2.11 points) yesterday. The trade volume on Wednesday was 12,734,421, slightly lower than the average trade volume of 14,319,161. However, the gain has been wiped off today.
On the other hand, the week was all ‘red’ for the MSFT stock. The stock dropped by 0.66% and was priced at $251.05 (down by 1.67 points) in the premarket trading session at the time of reporting. The market capitalization of the stock stood at $1.89 trillion. In line with NFLX, the MSFT stock is also nearing its 52-week low of $241.51.
Moreover, the MSFT stock was down by 0.37% and closed at $252.72 (dipping by 0.95 points) yesterday. The trade volume on Wednesday was 29,497,423, slightly lower than the average trade volume of 31,673,463. Though this week was not that great for the tech giant’s stock, the first of July was. The stock had earlier gained over 3% in that week and closed at $267.66 even during unfavourable market conditions. It will be intriguing to watch how it fares in the upcoming days, though it is not expected to close the week at a ‘green’ due to the consistent decline phases.
The Netflix and Microsoft Collaboration might be the last resort for the video streaming company since the company had been running into significant losses lately. Moreover, the latter also has a chance to scale up its operations and harness the opportunity for the better.