Will the cards be reshuffled?

Netflix attacks Amazon’s Fire TV Stick with a new maneuver. After the streaming provider lost a lot of subscribers at the beginning of this year, he now has to pull other strings. The solution could come in an unexpected opportunity that could provide Netflix with everything the company needs to wrap around.

Netflix attacks Amazon Fire TV Stick: Here’s what’s behind it

The times for the streaming giant are ugly. Already in the first quarter of this year, Netflix lost around 200,000 subscribers and had to cope with a sharp drop in its share price. One more reason why the company must act. An opportunity to reshuffle the deck, meanwhile, might come in Roku’s falling share price. Because the company already brings with it what Netflix wants: A growing advertising business and hardware that could push back the Amazon Fire TV Stick.

The starting conditions could not be more tempting. Since July of last year, Roku’s share price has fallen by around 80 percent. A takeover of the company is therefore financially much cheaper than it would have been the case a year ago. Netflix is ​​already exploring ways to integrate advertising into its service for the first time. The reason for this is the increasing competition between streaming providers and the loss of many subscribers. Roku already owns a video advertising platform that brought in about $647 million for the company in the first quarter. That’s about seven times what Roku made from sales from its hardware stores during the same period.

Roku wouldn’t be the first company to acquire Netflix. In the past, the streaming provider had already decided to also enter the video game business. Numerous smaller video game developers, including Boss Fight Entertainment, have been bought by the streaming giant. In addition, Roku and Netflix already share a common history. Because Anthony Wood, Roku’s founder and CEO, originally worked for Netflix.

Netflix Acquires Roku – Loose Rumors or Likely Development?

There is one point that clearly speaks against a takeover by Netflix. So far, the company hasn’t shown any interest in entering the streaming hardware business. Despite Roku’s strong streaming hardware presence in the US market, player sales fell about 19 percent, effectively resulting in a loss for the department. However, that part of the company has long been eclipsed by Roku’s profits from advertising revenue. An acquisition of Roku would give Netflix direct access to the advertising integration it wants.

With Netflix losing roughly 70 percent of its value to competition from other streaming providers, the Roku acquisition could provide a key advantage. This would also give the company direct insight into what viewers are watching and when they stop. And not just on their own platform, but on various rival streaming channels. With Roku boasting more than 61 million active user accounts, it could become the ace up Netflix’s sleeve. It remains to be seen which next steps the streaming provider will decide on.


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