The Perfect Match?

Rumor has it; Microsoft has sparked an interest in Netflix.

The buzz began generating back in early October, when CEO Reed Hastings stepped down from Microsoft’s board of directors. Speculation continued on Friday, October 26th as Netflix shares rose more than 13%, days after the company reported lower-than-anticipated subscriber additions.

Could this potentially be the perfect match? Both firms display attractive qualities the other admires—with 30 million streaming subscribers, Netflix could offer Microsoft a leadership position in the SVOD market over competitors Google and Amazon, while Microsoft may have the software Netflix needs in order to optimize the streaming experience.

It seems Microsoft and Netflix are already committed with the ability to stream Netflix content to the Xbox 360. But Microsoft wants more from the video game console— would the acquisition of Netflix assist in the transformation of the Xbox into an entertainment device?

With both parties declining to comment on the matter, only time will tell if Microsoft and Netflix have built something that is meant to last.