Steve Balmer, Please Acquire Netflix

On May 3, I suggested that Microsoft acquire Netflix and TiVo as additions to its Entertainment division, to complement Zune and Xbox.

These are both cheap right now for a variety of reasons. Both are great brands. The MS Netflix store would provide video DVDs and audio and video downloads on a subscription basis. Zune becomes just a device brand and the Netflix brand gets slapped on the Zune Store. Subscription is a Netflix forte, the content creators want it and Steve Jobs shuns it. What could be better?

TiVo brings a base of time-shifting customers and great technology and IP. TiVo becomes a service brand and Xbox the device. TiVo boxes become the low-end DVR-only Xbox.

All of this can be done right now. None of it requires legal or technological advances.

A recent post by Rick Aristotle Munarriz on Motley Fool also makes the case for a Microsoft-Netflix combination. Rather than summarize the key points of this excellent analysis here, I encourage you to read it.

Steve Balmer, are you listening? Get bold. Get unstuck. Shake things up.

Have some fun.

Copyright © 2007 Philip Bookman

Technorati: Business Strategy, Strategic Planning, Microsoft