In a move described as a “defining moment” for the company, Fox has announced its $22 billion purchase of Roku, an acquisition that will make Fox the third-largest player in US television by share of viewing.
Expected to close in 2027, the transaction combines Fox’s sports, news and entertainment content with its streaming platform, Tubi, and Roku’s connected TV platform.
Over the past few years, Fox has made small steps to adapt to changing viewing habits. In 2019, it repositioned its business around live news and sports. The following year, it acquired Tubi. But the purchase of Roku is its biggest move to date; one that solidifies its presence in the CTV industry and signals that Fox is adapting as the TV landscape shifts.
Advisory and consulting firm Madison and Wall predicts that $20 billion of advertising spend will be on streaming platforms by 2029, only a little less than traditional TV advertising. Streaming now makes up 47.6% of monthly TV consumption, more than double that of broadcast viewership.
With Fox’s heritage as a traditional media company, this acquisition was necessary to maintain relevance in a digital world. It brings into focus how traditional TV is adapting to streaming, betting on combined formats to meet current and future viewing and audience habits. Emphasizing the continued importance of live sports and news, Fox has recognized that viewers are moving to streaming for the variety and ease offered by on-demand content.
The TV landscape evolves
The $22 billion deal reflects the direction of the streaming industry, where success increasingly depends on more than content alone. Distribution, audience access, data and platform control have become equally important competitive assets.
The future of TV isn’t traditional vs. CTV. Rather, it’s a partnership of two sides. Fox and Roku represent this convergence. At the moment, many of these platforms exist in a silo. They don’t communicate, and this holds back the possibilities for the CTV industry. Fox and Roku could become the blueprint example of traditional TV and CTV working in unison, if all goes well.
The implications for both parties
While early commentators have suggested the takeover will rival Netflix and YouTube as one of the biggest streaming services in the US, Fox may not achieve dominance over these larger competitors. The deal puts it as the third-largest player in US television, yet YouTube owns 13.2% of monthly viewing in the US. Roku Channel sits at 3%, followed by Tubi at 2.2%. Fox has a long journey ahead if it’s to be on par with the likes of Netflix or YouTube.
Still, the deal raises interesting questions around neutrality and competition. Together, Fox and Roku will need to carefully manage how these platforms consolidate and balance their own content and advertising interests with those of their partners. Advertisers and publishers are increasingly looking for independent partners who can provide flexibility and transparency at scale. The creation of another walled garden ecosystem isn’t necessarily a positive addition to the CTV landscape when there is a demand to move toward an open, transparent market overall.
Data is CTV currency, enabling more targeted ads and an overall better experience for the viewer. Roku has a goldmine of data to offer Fox thanks to its pioneer status in the streaming industry. It was one of the first companies to bring streaming services to mass audiences in the US and the biggest streaming platform for smart TVs. As a result, over two decades, it has built a customer base of over 100 million active subscribers globally, which Fox now has access to.
The deal will significantly increase Fox’s presence within the CTV landscape. Roku auto-installs its own channels to user devices, a self-promotion that has been highly effective for The Roku Channel, Frndly, Howdy and Roku Originals. Under this deal, it is likely that Tubi and Fox One will also benefit from this auto-install, building their presence across Roku’s large subscriber base.
Fox will also have more power in carriage deal discussions with other Roku content partners, using licensed Fox content as an advantage in negotiations. For example, Paramount could license Fox’s movies and TV shows in exchange for favorable terms on the Roku platform.
For advertisers, publishers and streaming platforms, the deal is a reminder that the next phase of television will be defined by who controls the viewer relationship. Fox’s bet is that owning more of that relationship, from content creation to platform access, will matter more than ever in the streaming era.
“On TV & Video” is a column exploring opportunities and challenges in advanced TV and video.
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