Will Roku Buy Their Own Movie Studio?

2022 Could Be the Year Roku Buys It's Own Movie Studio

Roku, the company once only known for its tiny media streamers that can turn any TV into a Smart TV, is evolving. In the last several years they have grown into a full fledge streaming TV service through their Roku Channel.

Unlike Netflix, Amazon Video, Hulu and others, their content is all free. So a monthly subscription is not needed. But they do make money from the ads that play on content on their free channel.

They can't say the same for the media streamers they sell. They are actually losing money on each model sold.

But they realized early on that ad-revenue was where the money is. And now they are in a prominent position to sell ads on their free streaming channel.

What Would a Movie Studio Purchase Do for Roku?

First off, having their own movie studio would give their Roku Channel more access to original content. Original content is expensive to produce, but buying an existing movie studio which also includes content from its film and TV show archive would be a big plus.

Content is king for streaming channels. And the more you can keep viewers mesmerized and watching your channel, much greater earnings are then possible from ads.

Roku already purchased the content from the now defunct Qubi which gave them global-rights to 75 short form shows which they added to their Roku Channel library.

The Free Streaming TV Market Is Already Quite Crowded

Innovation is never a bad thing. It's nice to see Roku has not stopped innovating. And their Roku Channel which is very nice for a free streaming, also faces some pretty stiff competitors. Especially from Pluto, Tubi and other Free Roku Channels like these.

So it's important to make their Roku Channel stand out from the rest by offering exciting and unusual content. This will keep their viewers coming back for more instead of simply watching identical content on a competing Free channel.

But if anyone can make their channel, keep growing, it's Roku. They have a proven track record of success with their line of media streamers and Roku televisions. If they adopt the same winning strategy towards their streaming TV service. It will one day also dominate the free TV provider market as well.