Microsoft brings up a a fair argument in their video. Google does indeed scan through emails to find relevant information to be used in advertising on your Gmail Page. Hotmail does not have advertising based on email content. However, they most certainly have the ability to if they so desired. At the end of the day, this is just two tech giants having a war of words but as a consumer its important to be aware of what services you are signing up to and how your privacy will be effected. Its then your choice, and your choice only, if you are comfortable with that.
If you think the video above is off base or unnecessary sound off below.