Roku: a time bomb
Not long ago, it became public knowledge that Roku was having sensitive negotiations with Google, about maintaining the integration of Youtube on this platform. Only a couple of months later, Roku is once again in the eye of the hurricane. Now with another player that is none other than Amazon.
According to different sources, the turning point had to do with the support of Amazon’s AVOD app, IMDb TV. The company’s contract is soon coming to an end and it seems the chances of renewal are shrinking over time.
The last time the contract was negotiated, it was a ” both or none” agreement so dropping IMDb TV, would also have meant the direct loss of Amazon Prime Video.
Discontinuing IMDb TV wouldn’t represent a great loss for Roku, which has more than 55 million users. However, the same can’t be said about removing the Prime Video app from their system, on the contrary, this decision would be a serious hit for the business.
The use of data was another sticking point. According to The Information, Amazon pushed for detailed viewing data about what Roku’s subscribers watch across all apps, information that would allow the company to benchmark and optimize sales, by identifying those users who are impacted by ads on Roku’s platform.
One of Roku’s spokespeople stated: “Renewing discussions with dozens of partners each year is the normal course for businesses that are focused on achieving mutually beneficial agreements providing customers the best possible user experience and value.”
Still, nothing has been confirmed so far and the companies continue discussing the matter.