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Netflix might be purchasing Roku! (2 Viewers)

Josh Steinberg

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The article’s analyst calls it absurd but I’m not sure I agree with him. Netflix has stated they want to develop an ad-supported option in addition to their commercial free plans. Roku’s channel has a very robust ad supported business. In one fell swoop, Netflix could buy the ad infrastructure they want along with a hardware platform to put them on par with Apple and Amazon.

I’m generally unimpressed with the current societal/business initiative that everything must be growing all the time or else, and the notion that anything short of world domination is complete and utter failure, but if that’s the market they operate in, this sorta makes sense to me. I just don’t think overall that’s a healthy environment for all our businesses.
 

Lord Dalek

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Sounds like fake news designed to feed the speculator market and nothing more.
 

Stephen_J_H

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The article’s analyst calls it absurd but I’m not sure I agree with him. Netflix has stated they want to develop an ad-supported option in addition to their commercial free plans. Roku’s channel has a very robust ad supported business. In one fell swoop, Netflix could buy the ad infrastructure they want along with a hardware platform to put them on par with Apple and Amazon.

I’m generally unimpressed with the current societal/business initiative that everything must be growing all the time or else, and the notion that anything short of world domination is complete and utter failure, but if that’s the market they operate in, this sorta makes sense to me. I just don’t think overall that’s a healthy environment for all our businesses.
Makes more sense than the other speculation on that website: Apple buying Netflix.
 

John Dirk

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The article’s analyst calls it absurd but I’m not sure I agree with him. Netflix has stated they want to develop an ad-supported option in addition to their commercial free plans. Roku’s channel has a very robust ad supported business. In one fell swoop, Netflix could buy the ad infrastructure they want along with a hardware platform to put them on par with Apple and Amazon.

I’m generally unimpressed with the current societal/business initiative that everything must be growing all the time or else, and the notion that anything short of world domination is complete and utter failure, but if that’s the market they operate in, this sorta makes sense to me. I just don’t think overall that’s a healthy environment for all our businesses.
As usual, your logic is spot on but, in this case, I don't think purchasing Roku would bode well for Netflix. First and foremost, doesn't Netflix already have about 8 billion in net debt?

Second, and this is a big one in my opinion, Netflix has grown and survived to date by being an innovator. In the business world, those who can't innovate generally overpay for companies that can. If Netflix had reserves on par with other behemoths who have given up on innovation like Apple and Cisco it might make sense. Since they do not I'd say this is a slippery slope that might ultimately kill both platforms. Investor patience with Netflix is likely wearing thin.

Is building an add-supported platform really so difficult? I'm on record as believing this too is a horrible idea but we all know it's coming. What I do believe Netflix should do immediately is survey their customer base to get a better idea of what they value overall. I'd bet a whole lot of the content they've been pouring money into has little value to subscribers. I don't think Netflix's problem is members or revenue but, instead, grossly out of control operating costs.
 

Josh Steinberg

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Is building an add-supported platform really so difficult?

The technical part of it should be easy enough for their engineers to put together. The harder part comes with cultivating relationships with potential sponsors and actually selling the time and then delivering the viewership promised, and Roku seems to have done well with that. I don’t think Netflix needs their engineers, but the thinking might be that they’d benefit from buying years of experience in that field rather than trying to build it up from scratch.

As usual, your logic is spot on

You are quite kind and if you ever run a newspaper or buy a consulting firm I hope you’ll hire me :)
 

Guardyan

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It's refreshing to find a thread where people discuss Netflix's current state objectively instead of rooting against it while also trying to kick it down. Go anywhere else and you find people condemning Netflix for trying to offer a cheaper ad-based option, complaining that it plans to find a way to charge more the "login sharers", and that it doesn't have enough 4K content or new movies. The comparison to other streaming services and how they are much cheaper are also frequently mentioned.

I for one think that Netflix has all the advantage of being the first out there and also the advantage of having the best app - it'd play on a fridge if fridges had screens. It's top quality. Also, Netflix was once "a small guy" but people seem to have forgotten that and want to see its demise. It's like people like to see something come up, conquer the top of the world and then watch it fall apart.

I'd recommend them to keep focusing on distributing "television" from around the whole world, as they already do, and see what types of media they develop best and focus on that. Some shows are really bad and show that they have the average streaming budget for productions and that sorta reeks of low budget when they get too ambitious. Apart from that I must say that I'm never without choices on Netflix. I always have stuff on my queue and have already accepted that at some point I'll leave this world without watching all the movies in the world. Well, but that's not bad actually as some things are meant to be ignored. On a different note, I think that learning to pick and choose is a skill worth honing and people in this forum in general, from what I can see, don't suffer for lacking it. Generally the people that complain about Netflix's catalogue are people that need big marketing campaigns telling them what to choose.
 

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