Movies

Will the cards be reshuffled?

Netflix attacks Amazon’s Fire TV Stick with a new maneuver. After the streaming provider lost many subscribers earlier this year, it now has to pull strings. The solution could come at an unexpected opportunity that could provide Netflix with everything the business needs to wrap around.

Netflix attacks Amazon Fire TV Stick – here’s what’s behind it

Times for the streaming giant are bad. Already in the first quarter of this year, Netflix lost around 200,000 subscribers and faced a steep drop in its share price. One more reason why the company must act. An opportunity to shuffle the deck, meanwhile, could come from the drop in Roku’s share price. Because the company already carries with it what Netflix wants: a growing advertising and hardware business that could push back the Amazon Fire TV Stick.

The starting conditions could not be more attractive. Since July last year, the Roku stock price has dropped by about 80%. A company takeover is therefore much cheaper financially than it was a year ago. Netflix is ​​already exploring ways to integrate advertising into its service for the first time. The reason for this is the growing competition between streaming providers and the loss of many subscribers. Roku already owns a video advertising platform that brought the company about $ 647 million in the first quarter. That’s roughly seven times what Roku got from its hardware store sales over the same period.

Roku wouldn’t be the first company to acquire Netflix. In the past, the streaming provider had already decided to enter the video game business as well. Numerous smaller video game developers, including Boss Fight Entertainment, have been bought by the streaming giant. Plus, Roku and Netflix already share a common story. Because Anthony Wood, founder and CEO of Roku, originally worked for Netflix.

Netflix Acquires Roku – Scattered Rumors or Probable Development?

There is a point that speaks clearly against a acquisition by Netflix. So far, the company hasn’t shown any interest in entering the streaming hardware business. Despite the strong presence of Roku’s streaming hardware in the US market, player sales fell by around 19%, effectively resulting in a loss for the department. However, that part of the company has long been overshadowed by Roku’s profits from advertising revenue. The acquisition of Roku would give Netflix direct access to the ad integration it wants.

With Netflix losing around 70% of its value to competition from other streaming providers, the acquisition of Roku could provide a key advantage. This would also give the company a direct view of what viewers are watching and when they stop. And not just on their own platform, but on various rival streaming channels. With over 61 million active user accounts, Roku could become Netflix’s trump card. It remains to be seen what next steps the streaming provider will decide.


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