There are currently rumors that Netflix wants to take over the US manufacturer Roku. This is known, among other things, for its TV sticks. This step could be worthwhile for both companies.
Streaming service Netflix is still number 1, but is currently in a crisis. For some time now, fueled by the current situation, there have been repeated rumors that Netflix is interested in acquiring Roku. But what does that mean exactly and what can we possibly expect?
Netflix in crisis, just like Roku
In spring 2022, Netflix recorded a decline in subscription numbers for the first time since 2011. In addition, the criticism of the rising prices and the content made available by the provider is increasing. Netflix has already responded by announcing several new measures, none of which are imminent. Among other things, the service wants to take even tougher action against so-called account sharing. There’s even talk of an additional, ad-supported subscription, as is a live TV feature. Above all, however, the productions should be of higher quality but fewer in number.
Roku, on the other hand, is not doing really well after a successful year 2020 due to corona. The market leader in streaming devices is currently struggling with a significantly lower share valuation. In addition, Roku is clearly ahead in the US market, but has only started late in other countries such as Germany and has therefore not really arrived.
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For whom would a takeover be worthwhile?
The two companies have in common that they are leaders in their field, but are now coming under a lot of pressure from behind. Netflix would of course bring its streaming platform and extensive range of films and series with it in the event of a takeover. Roku, on the other hand, makes streaming hardware with accompanying software that can be used to bring many streaming services together.
The idea of a takeover of Roku by Netflix makes sense in that Netflix is once again emphasizing its efforts to find a more cost-effective model in which it can be advertised. Roku has a well-developed advertising infrastructure, as the company places advertising on its own devices. It would also be conceivable to have your own Netflix streaming stick, which would easily bring the service to all devices with a corresponding connection.
On the other hand, Netflix is already available on the vast majority of devices. Roku, on the other hand, makes its money by offering a multi-service solution. Users are then shown where they can see which content and do not have to switch between the individual services for a long time. These are again reasons that would initially speak against a takeover, but of course do not rule it out.
Initial talks between Netflix and Roku
Now, of course, the question arises as to how concrete the takeover ideas are. According to the US news site “Business Insider”, initial talks between Netflix and Roku have actually already taken place. In addition, a transaction stop for the employee-owned shares was announced by Rokus. Such measures are mainly used when the company plans to publish information that causes the share price to fluctuate significantly. These are all clues that make the rumor mill seethe. TECHBOOK keeps you up to date.