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As Roku Grows, It's Moving Towards Pay-To-Play For Successful Channels (Updated: Roku News)

Discussion in 'Off-Topic Discussion' started by CatfishRivers, Sep 26, 2014.

  1. CatfishRivers

    CatfishRivers Well-Known Member

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    As Roku grows, it’s moving towards pay-to-play for successful channels — Tech News and Analysis (click for full article)

    by Janko Roettgers - Sept. 26, 2014

    SUMMARY: Getting your app onto Roku’s platform is free. But once you start to make real money, the company will ask you to sign a new deal — to the surprise of some publishers.

    -- With 1,800 channels and growing, Roku is easily the largest TV app publishing platform. The company’s set-top boxes have long been embraced by both industry heavyweights like Netflix and small rural churches alike, all looking to reach an audience without the need to strike deals with cable companies. But as Roku’s audience is growing to 10 million-plus devices sold in the U.S. alone, the company is increasingly looking to strike commercial deals of its own, which can catch some publishers by surprise.

    I’ve had conversations with a number of publishers who have channels on Roku recently, all of whom declined to go on the record because of their existing business relationship with the company. They all had been approached by Roku to strike a commercial deal in recent months, and not everyone saw this coming. “They called out of the blue,” said one publisher, and I’ve been told more than once that Roku representatives were pretty aggressive in their demands for revenue sharing deals, asking for cuts of advertising, subscription and transactional pay-per-view revenue. “They are acting like a cable company,” said one publisher.

    Read more at: As Roku grows, it’s moving towards pay-to-play for successful channels — Tech News and Analysis
     
    Last edited: Sep 26, 2014
  2. CatfishRivers

    CatfishRivers Well-Known Member

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  3. CatfishRivers

    CatfishRivers Well-Known Member

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  4. ChrisG8

    ChrisG8 Well-Known Member

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    Profit margins are slim or nil on the hardware and I can say I have been using Roku since sometime in 2012 and don't recall paying Roku for any services or accessories. It is a difficult market to make any profits, that much is very clear.
     
    • Agree Agree x 1
  5. CatfishRivers

    CatfishRivers Well-Known Member

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    I found it interesting that Roku had revenue of $190 million in 2013 but still didn't show a net profit. This is why IMO the best chance for an Android TV box to succeed would be a Nexus box in which Google subsidizes (breaks even) on the hardware. Google is in a better position than any of the major players in the set-top box market to monetize the hardware. Google is primarily in the data-collection business to improve advertising results - plus they have the Google Play Store. The Android TV OEMs have none of that and they will have a very tough-go in the current market environment. How can an Android TV OEM compete against something like an $84 subsidized Fire TV? Roku can't even make a profit in this market - (but at least they realize the future is in monetizing their hardware through revenue sharing and they have a plan in place).
     
    Last edited: Oct 2, 2014
  6. CatfishRivers

    CatfishRivers Well-Known Member

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  7. CatfishRivers

    CatfishRivers Well-Known Member

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  8. CatfishRivers

    CatfishRivers Well-Known Member

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  9. CatfishRivers

    CatfishRivers Well-Known Member

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    Roku just got a Google Play Movies channel mdash Tech News and Analysis (click for full article)

    Roku just got a Google Play Movies channel

    by Janko Roettgers OCT. 31, 2014 - 10:38 AM PDT

    -- Roku users just got another way to rent and buy movies and TV shows — but this one is worth mentioning regardless: Owners of current-generation Roku players now have access to a Google Play Movies and TV Shows channel on their devices, which means that they’ll also have access to any of the movies or shows they have previously bought from Google on their Android devices. The Google Play Movies channel also comes with info overlays that identify the actors on screen. Support for Roku TVs will follow soon, according to Roku’s press release.

    ----------------------------------------------------------------------------------------

    This article has some additional information:

    Google Play Movies TV channel now available on Roku 9to5Google
     
    Last edited: Oct 31, 2014
  10. ChrisG8

    ChrisG8 Well-Known Member

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    The Roku 2XS, a previous generation model also got this channel, I just added it.
     

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