Microsoft Prepares to Challenge Netflix Next Week

Microsoft is expected to follow Netflix's lead next week when it announces more details about its coming original content catalogue.

Apr 30, 2014 at 3:00PM

You may not think of them as direct competitors, but tech giant Microsoft (NASDAQ:MSFT) and streaming stud Netflix (NASDAQ:NFLX) are preparing for a head-to-head showdown that's set to pick up steam as early as next week.

That's when Microsoft, in a direct challenge to Netflix, is expected to unveil more details about some of the suite of original content it's committed to develop. Should Microsoft investors be jumping for joy, and should Netflix investors be worried?

Let's take a look.

Microsoft versus Netflix
Microsoft's orignal content ambitions date as far back as 2012 when it hired away longtime TV executive Nancy Tellum away from CBS. However, as names like Netflix have cashed in big-time with winning original content like House of Cards and new competitors like Yahoo! and, Microsoft's original content efforts have largely stalled out.


Source: Microsoft.

This makes Netflix's clear advantage in streaming appear safe and sound despite new competition. However, at the same time, Microsoft undoubtedly has the financial resources to make a dent in this growing media space if it so chooses.

In the video below, tech and telecom specialist Andrew Tonner looks at the details on Microsoft's expected original content prospects and how investors should interpret yet another name moving into Netflix's key area of strength.

The trillion-dollar trend Microsoft and Netflix are cashing in on
You know cable's going away. But do you know how to profit? There's $2.2 trillion out there to be had. Currently, cable grabs a big piece of it. That won't last. And when cable falters, three companies are poised to benefit. Click here for their names. Hint: They're not Netflix, Google, and Apple. 


Andrew Tonner has no position in any stocks mentioned. The Motley Fool recommends and owns shares of and Netflix. It also recommends Yahoo! and owns shares of Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

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Jun 12, 2015 at 5:01PM

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KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

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Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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