Is Netflix buying Roku really happening?. According to the inside reports, the shares of Roku are moving higher since Wednesday as employees are starting to speculate about a potential Netflix acquisition. Also, the trading window was abruptly closed by Roku for its staff to sell vested shares in the Company.
“Is Netflix Buying Roku” buzz seems to be true. There are many reasons which fuels this rumor like purchasing the Roku will give Netflix a play in advertising-supported streaming video. Netflix is also trying to develop its own streaming stick for a very long time and this deal can open entry for Netflix’s own streaming stick.
Officially Roku and Netflix have declined to comment on the speculation. The low-priced and ad subsidized membership level was announced by Netflix in April. Netflix was recently in news for losing subscribers in the first quarter and faced greater loss in the second quarter.
Warner Bros. Discovery, Paramount Global, Walt Disney, and many more are some of the big competitors of Netflix right now. Hop on this article to know more about Is Netflix Buying Roku?
Why Is Netflix Buying Roku
The answer to is Netflix Buying Roku is Yes.
There are many reasons. The first, is Streaming Stick. Netflix is trying to develop its own streaming stick for a very long time.
Roku has a history of making some of the best Streaming Sticks like Roku Streaming Stick+ and Roku Streaming Stick 4K. So Netflix-Roku tie-up can be real as recently Roku has also entered a partnership with Hisense and TCL, both have Roku’s streaming platform built-in.
It’s not a secret that Netflix wants to bring ads to its service just like Hulu and HBO max. Netflix CEO Reed Hastings also told investors that “he is against the complexity of advertising” and “he is a big fan of consumer choice”.
He told, “he wants to allow consumers who would like to have a lower price and are advertising tolerant to get what they want makes a lot of sense”.
The second reason for ‘is Netflix Buying Roku’ – this tie-up could be advertising. According to insiders Roku made seven times as much from advertisements in its first quarter this year as it did from selling hardware.
Roku knows how to deliver ads with video-on-demand content and its valuation is at an all-time low.
The Third reason ‘is Netflix Buying Roku’ could be Roku would create new opportunities for Netflix recommendations. The first thing Roku users see on TV is the Roku home screen.
Netflix will help Roku add recommendations to that screen by combining its extensive dataset on users’ viewing with Roku data on what users search for. This combination would get Netflix back to recommending across the entirety of what someone watches as it worked in the early days.
Is Netflix Buying Roku Absurd
‘Is Netflix buying Roku’ can be an absurd idea as Netflix will not want to manage Roku’s hardware business. Roku makes set-up boxes and dongles to access internet TV and has an operating system for smart television makers.
Netflix owning hardware basically means prioritizing one hardware over themselves. Also, various analysts are calling this ‘Is Netflix buying Rokual highly unlikely and an absurd idea.
A question that arises here is how comfortable it will be for rivals to stream service with a Netflix-owned Roku. How congenial it would be for TV manufacturers to go with Roku as the operating system.
Also after this deal, Roku would be seen as a rival rather than an ally, and it’s hard to see other streaming service stocks willing to cut checks to fuel the ascent of Netflix.Netflix will turn over Roku’s current business model.
To Sum Up
Roku has been looking for buyers for years, and with both companies being in a tough spot this ‘Is Netflix buying Roku’ deal can boost them. Roku was always a popular choice as it was never attached to any particular streaming service or marketplace.
Under Netflix’s lead, Roku would optimize its interface. As fire TV has Prime Video, Apple TV has TV+ and Roku will have Netflix, and Google have both YouTube and YouTube TV, they can never stand in competition with Netflix and Roku.
There are both positive and negative points from this ‘Is Netflix buying Roku’ deal let’s see what happens! Comment below to tell your thoughts about the Netflix-Roku Tie-Up and Is Netflix Buying Roku Worth???