Fox Corp is buying Roku in a cash-and-stock deal valued at about $22bn in a bet that pairing its sports and news programming with a top TV streaming platform will strengthen its position as audiences shift online.
The deal, announced on Monday, gives Fox access to the more than 100m households using Roku’s streaming platform, potentially helping the cable TV-reliant media company better target ads and reduce reliance on traditional distribution.
One of the first companies to bring streaming platforms like Netflix and YouTube to television through connected devices and smart TVs, Roku’s business is largely driven by advertising and subscription revenue from streaming apps on its platform. The company also operates the free-to-watch Roku Channel.
Advertising is its largest component, with revenue of $613m in the first quarter, up 27% year-on-year.
Soon, you’ll be able to use your Roku to support Fox News!
So, cable with extra steps?
Most major streamers tried to follow the Netflix model where they had enough for everyone in order to justify its subscription. It may be better if the major companies broke up their subscriptions so people can subscribe to far less content.