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 Amazon.com, Microsoft's original content efforts have largely stalled out.
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.
Andrew Tonner has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Amazon.com 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.