Fox pledges to keep Roku an open platform post-merger
Fox pledges to keep Roku an open platform post-merger
The company made several commitments to the Department of Justice to ensure approval of its Roku acquisition.
Fox has officially closed a high-profile deal to purchase Roku, giving it control of the Roku operating system, the free streaming service The Roku Channel, the Roku streaming device and smart TV lines, and more. Now, the Department of Justice is revealing more details about its approval of the merger, including several commitments Fox made to keep Roku an open platform.
Key Details:
- We promise: Fox has pledged not to deprioritize non-Fox content in searches on Roku.
- Everyone welcome: Non-Fox content will be available on Roku for at least three years.
- Probably not: The DOJ says the merger is unlikely to cause competitive harm.
In order to get its merger with Roku past DOJ regulators, Fox made four pledges to convince the Department that the merger won’t have a negative impact on the entertainment industry as a whole. The DOJ gave the merger a long look, amidst scrutiny that it was giving too little scrutiny to deals that involved political allies of President Trump, such as the Paramount and Warner Bros. Discovery merger.
The commitments include:
- A pledge to continue carrying non-Fox content on Roku for at least three years.
- A promise not to discriminate against non-Fox content in search results on Roku devices.
- Fox will continue offering data products to third parties, consistent with Roku’s standard distribution agreements.
- Fox will keep existing contractual firewalls in place with content partners for competitively sensitive non-Fox data.
The DOJ’s Antitrust Division solicited second requests for information from both Fox and Roku in September, weeks after Fox announced it was acquiring Roku in a $22 billion deal. Its resulting investigation found that “substantial risk of harm to competition” was unlikely to result from the merger.
For customers, these pledges mean that the Roku user interface is unlikely to undergo any major changes — at least in the next few years. Fox would be wise not to upset the Apple cart with Roku’s UI, which has become the most popular in the United States thanks to its simplicity and features.
Roku recently dropped its third-quarter earnings report, revealing that it had set a new record for profit generated in a three-month period and $1.5 billion in revenue overall. It’s in a strong financial position, and now it’s part of the larger Fox family.
Roku Channel
The Roku Channel is a free, ad-supported streaming service that offers a broad mix of movies, TV shows, live linear channels, and original programming. Available to all viewers — not just Roku device owners — the service features licensed content from major studios alongside Roku Originals, which include exclusive series, movies, and specials previously produced for Quibi, as well as new original projects developed specifically for the platform.
