Rumor that Netflix might purchase Roku has everybody buzzing, but it surely is senseless


If you searched Google this morning for the most recent information articles a couple of juicy little bit of gossip that’s electrified the leisure press courtesy of a report from Insider — the rumor that Netflix could be prepping a bid to purchase Roku — don’t be stunned in the event you really feel much more confused after perusing the headlines you see within the search outcomes. “Netflix buying Roku would make a lot of sense,” Fast Company declares. “Why Netflix buying Roku doesn’t make sense,” Yahoo Finance counters.

In different phrases, consultants and analysts are everywhere in the map. And then there’s this tweet from the consummate Hollywood insider and leisure trade whisperer Matt Belloni, host of the implausible podcast The Town. Personally, this one is my favourite bit of research up to now.

With a little bit of sarcasm directed at the truth that all the excitement appears to be coming from inside Roku, slightly than its a lot greater streaming rival (which might be one other matter solely), Belloni tweeted: “I would also like my kid’s lemonade stand to be bought by Netflix. Big win for both sides. Everyone internally at my house is buzzing about it, frankly.”

Roku-Netflix merger?

One cause a deal might supposedly be taking place quickly is that it could be a simple strategy to get Netflix into the promoting recreation rapidly. Netflix, bear in mind, is reeling from current enterprise circumstances and is scrambling to start out providing an ad-supported subscription tier. Possibly as quickly as later this 12 months.

Of course, Netflix doesn’t have its personal advert gross sales pressure, because it’s not even on this recreation but. The firm must construct a framework for all this on the fly, determining the reply to questions like: Where ought to its adverts be inserted? How lengthy ought to they be? What’s the utmost advert load that will work?

Meantime, we must always be aware that the Insider didn’t supply any laborious proof to help the potential for a Roku-Netflix merger. Rather, Roku appears to have abruptly stopped staff from promoting vested inventory. Yes, that would imply one thing is imminent, but it surely’s not an ironclad indicator. Inside Roku, sure, there’s additionally chatter a couple of Netflix deal. But, once more, that’s not ironclad proof by itself, both (see Belloni’s tweet above).

Don’t maintain your breath

If you don’t look too carefully right here, you, too, may end up getting spun up and seeing — no matter it’s that you simply wish to see on this rumor. Like the truth that Roku’s founder and CEO himself, Anthony Wood, as soon as really labored at Netflix (operating Internet TV). Connections abound!

An exterior shot of a Netflix workplace constructing with a big Netflix brand signal on the high. Image supply: FG/

Why I’m within the don’t-hold-your-breath-camp on this deal, although, for now:

Partly, it’s due to the penny-pinching mode that Netflix is in in the meanwhile. It’s shedding folks, it’s canceling content material offers, and pulling again from some enterprise alternatives to protect money. The time doesn’t appear proper, in different phrases, for a splashy acquisition.

Also, Wood has not been shy in a single interview after one other in conveying his want to maintain Roku impartial for so long as doable.

He’s additionally described as one thing that doesn’t really feel like it could essentially go Netflix’s Keeper Test. Namely, he’s an impartial thinker, and a fierce one at that.

“ANYONE who thinks Netflix is buying Roku does NOT understand Roku’s biz model & how it cannot work inside Netflix,” media analyst Rich Greenfield tweeted on Tuesday. “Forgot about what Roku employees want, think about Roku’s biz model vs Netflix Not to mention the importance to Netflix of remaining platform agnostic.”

More Netflix protection: For extra Netflix information, take a look at the most recent new Netflix films and collection to observe.