This week, Google TV announced that it would be integrating The Roku Channel into its platform, bringing an additional 500 free-to-air channels to its customers. The collaboration is set to bolster Google’s position in the competitive streaming sector amidst a profitable year for the USA’s biggest services.
Integration of Roku Offers More Choice
Over the last five years, streaming services have realized just how important it is to offer a broad selection of titles. In addition to original programming, companies from Netflix to Prime Video have invested heavily in licensed content through exclusive deals.
It’s a tactic that online entertainment services from music platforms to online casinos have adopted. For example, customers can browse from thousands of titles provided by dozens of developers when playing slots for real cash at Paddy’s. Like TV and film content, these games come in many genres and styles to appeal to a wider audience. The Google TV and Roku partnership similarly guarantees that audiences with diverse tastes will find something that suits them.
Google TV Benefits from Roku’s Large Library
While a Roku app was previously available to download on Google TV, the new move will allow users to search directly through 500 of Roku’s free ad-supported streaming channels from the home page. The channel offers more than 80,000 titles, including live content such as news, sports, cooking, lifestyle, and music programming.
The integration of Roku also addresses the problem of content fragmentation, which is a significant point of frustration among consumers. Streaming content from several platforms is simplified through Roku, with users able to search Netflix, Prime Video, Apple TV+, Hulu, and much more in one streamlined platform.
The Mutual Business Benefits
The new partnership provided benefits to both Google TV and Roku. While Google, which does not produce original content, gains access to Roku’s content library, Roku expands its reach to a user base of more than 270 million people. The unprecedented convenience is a major sales driver for Google TV, which earned more than $15 billion in revenues in 2023 from its subscription services.
Roku, too, has seen increased revenues, with a 16% year-over-year growth last quarter bringing its quarterly revenues to over $1 billion for the first time. With 85.5 million customers reported in September, it is expected to reach the milestone of 100 million households in the next 12 months. Its relationship with Google will certainly bolster its chances.
Standing Out from the Competition
The smart TV streaming platform market remains hotly competitive, with Google’s biggest rivals being Samsung’s Tizen, Amazon’s Fire TV, and LG’s webOS. The integration of Roku marks a broader trend in the industry that sees blurring boundaries between the platforms. This can see content-sharing agreements between different platforms, such as HBO’s content appearing on both Netflix and Max.
With an increasingly crowded and diversifying market, Roku’s deal will help it maintain relevance and achieve its business goals. Google TV can also expect to maintain its prime position among the smart TV streaming competitors by offering free ad-supported alternatives to premium content.
