Roku has welcomed Netflix into the ad streaming market. As SVoD service Netflix this week launches a low-cost, ad-supported tier in 12 territories, Roku Head of Originals David Eilenberg said his platform doesn’t see a direct threat and instead is focused on the benefits of long-term market changes. “We believe the that the catalytic effect of [Netflix’s entrance] will have on the holistic shift from linear to streaming on ad spend outweighs short-term competition,” he said.
He also argued that the Roku box is a “fundamentally different” product to Netflix and other low-cost streamers “as ours is truly free and they ultimately require a monthly subscription, even at a reduced fee.
They resonate differently with consumers.” Netflix is also available through Roku in the U.S. “All of these companies who are competitors in one respect are partners in another,” said Eilenberg.
Roku certainly faces challenges, as despite total revenues and user base numbers tracking well ahead of analysts’ fourth quarter predictions this week, its stock fell as shareholders quibble over the downturn in the digital ad market.
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