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A Netflix/Roku Deal Could Avoid the Next Major Streaming Carriage Dispute

A Netflix/Roku Deal Could Avoid the Next Major Streaming Carriage Dispute

Jason Gurwin
Jason Gurwin has has spent the last 10 years in the technology, media, entertainment industries. For The Streamable, he specializes in all things media like streaming services, devices, and cord cutting.
Read full bio ›
Jason Gurwin
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On Wednesday, rumors started swirling that Netflix could be interested in buying Roku in order to help with their upcoming ad-supported tier. While there has been pushback from the analyst community, if the two companies don’t reach a deal, there could be major carriage dispute brewing.

In the last 18 months, Roku has had difficult negotiations with Peacock and HBO Max, which saw both services launch without the support of the largest smart TV platform in the United States. Roku also narrowly avoided losing the Fox Sports App ahead of the 2020 Super Bowl.

But, most recently the company had a prolonged dispute with YouTube TV and narrowly avoided seeing the YouTube App removed from the platform.

If Netflix doesn’t acquire Roku, could this be the next major carriage dispute for the platform?

Historically, Netflix has been such a behemoth that it received special treatment from platforms that would allow the streaming giant to pay less — or nothing at all — for inclusion on platforms or streaming remotes. And when the company didn’t get such sweetheart deals, it could avoid paying platforms by having users sign-up directly on its website and just use the app to log-in and stream.

That won’t be so easy when the SVOD launches its ad-supported tier.

Most platforms, notably Roku and Amazon Fire TV, ask for a portion of ad inventory in exchange for appearing on their platforms. That was a major sticking point in deals for Peacock and HBO Max. In some cases, Roku has even asked for access to content in order to make it available as part of its free ad-supported service, The Roku Channel.

Now that Netflix is searching for subscriber growth, the streamer doesn’t have the same leverage as it used to, where it might have been able to push back before. If Netflix wants to successfully launch its ad-supported tier, it is going to need partners like Roku and Fire TV. Netflix has never been in this position before, so if the two sides don’t reach a deal, this could very well be the next major dispute between a streaming platform and a streaming service.

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    Netflix

    Netflix is a leading subscription-based video streaming service that offers on-demand access to an extensive library of over 3,000 movies, 2,000+ TV shows, and a growing collection of acclaimed Netflix originals. Renowned for producing groundbreaking content, Netflix has become a cultural powerhouse with hit originals like “Stranger Things,” “Wednesday,” “Squid Game,” “The Crown,” “Tiger King,” “Bridgerton,” “The Witcher,” and “Black Mirror.”

    …

    The platform constantly updates its catalog, introducing fresh content alongside timeless classics and international hits. Netflix’s commitment to storytelling has also earned critical acclaim, with award-winning exclusives such as “Roma,” “Marriage Story,” “The Power of the Dog,” “Mank,” and “Ma Rainey’s Black Bottom.” In 2023, their animated film “Guillermo del Toro’s Pinocchio” won an Academy Award for Best Animated Feature, further solidifying Netflix’s reputation for high-quality content.

    Recently, Netflix has expanded beyond standard movies and TV titles with the addition of video podcasts, and is also exploring a digital store that would offer third-party streamers within the app.

    Netflix offers three plans – stream on 2 devices in HD with the “Standard with Ads” ($8.99) plan, on 2 devices in HD with the “Standard” ($19.99) plan, and 4 devices in up to 4K on the “Premium” ($26.99) plan.

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  • Roku

    Roku is a streaming device that can be used to watch Live TV Streaming Services and On Demand Streaming Services.

    Limited Warranty

    Your Roku probably isn’t covered against mishaps and malfunctions. We’ve partnered with 5Devices to give The Streamable readers a protection plan for any internet-connected device, including your Roku, iPhone, etc starting at $2.67 per device per month. And the good news is that it covers devices you already use (ie. no need for proof of new purchase).

Jason Gurwin
Jason Gurwin has has spent the last 10 years in the technology, media, entertainment industries. For The Streamable, he specializes in all things media like streaming services, devices, and cord cutting.
Read full bio ›
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