Netflix’s Damage Control Strategy By Buying Roku?

It is well-known Netflix is not exactly in the right spot at this point in time. After all the brouhaha over the popularity of Netflix, the streamer has lost about 200,000 subscribers in the first quarter. And to add to this, the company’s share value dropped by more than 25% as a result. But Netflix, with its brand identity, is looking to revamp its game by acquiring Roku.

Based in San Jose, California, the company is known for creating various digital media players for video streaming. It also licenses its hardware and software to other companies. Incidentally, since July last year, Roku’s stock has dropped by 80%. Another catalyst for the process is reports of the leading smart TV operating system closing a trading window for employees to sell vested shares in the company. Though the staff can normally sell their stocks at any time, Roku has halted all transactions. Such restrictions are put in place when the company is about to release information that could have a significant on its stock price. This also helps thwart insider trading.

Incidentally, Roku is more than its namesake set-top box. It’s also the leading aggregator of both paid and ad-supported streaming services, with more than 10,000 streaming channels gathered in one place. The company also has 61 million active household accounts. This has resulted in the tech organization’s bargaining power with streaming services supported by advertising increased.

Even if Netflix acquires Roku, the first major change would be its own streaming stick. Already, Roku Express in 2019, and 4K versions like the Roku Streaming Stick + Roku Streaming Stick 4K were released n 2021.
Trade experts feel the association will be a match made in heaven