Netflix attacks Amazon's Fire TV Stick with a new maneuver. After the streaming provider lost a lot of subscribers at the beginning of this year, he now has to pull other strings. The solution could come in an unexpected opportunity that could provide Netflix with everything the company needs to wrap around.
Netflix attacks Amazon Fire TV Stick: Here's what's behind it
The times for the streaming giant are ugly. Already in the first quarter of this year, Netflix lost around 200,000 subscribers and had to cope with a sharp drop in its share price. One more reason why the company must act. An opportunity to reshuffle the deck, meanwhile, might come in Roku's falling share price. Because the company already brings with it what Netflix wants: A growing advertising business and hardware that could push back the Amazon Fire TV Stick.
Netflix Acquires Roku – Loose Rumors or Likely Development?
There is one point that clearly speaks against a takeover by Netflix. So far, the company hasn't shown any interest in entering the streaming hardware business. Despite Roku's strong streaming hardware presence in the US market, player sales fell about 19 percent, effectively resulting in a loss for the department. However, that part of the company has long been eclipsed by Roku's profits from advertising revenue. An acquisition of Roku would give Netflix direct access to the advertising integration it wants.
With Netflix losing roughly 70 percent of its value to competition from other streaming providers, the Roku acquisition could provide a key advantage. This would also give the company direct insight into what viewers are watching and when they stop. And not just on their own platform, but on various rival streaming channels. With more than 61 million active user accounts, Roku could become the ace up Netflix's sleeve. It remains to be seen which next steps the streaming provider will decide on.
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