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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

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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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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