Warning: This story contains spoilers from season 1 of Wednesday.
Roku Welcomes Netflix To Ad-Streaming Market, Says Originals Chief David Eilenberg: ‘We’re Fundamentally Different Products’
04.11.2022 - 13:51 / deadline.com
Roku has welcomed Netflix into the ad streaming market.
As SVoD service Netflix this week launches a low-cost, ad-supported tier in 12 territories, Roku Head of Originals David Eilenberg said his platform doesn’t see a direct threat and instead is focused on the benefits of long-term market changes.
“We believe the that the catalytic effect of [Netflix’s entrance] will have on the holistic shift from linear to streaming on ad spend outweighs short-term competition,” he said.
He also argued that the Roku box is a “fundamentally different” product to Netflix and other low-cost streamers “as ours is truly free and they ultimately require a monthly subscription, even at a reduced fee. They resonate differently with consumers.”
Netflix is also available through Roku in the U.S. “All of these companies who are competitors in one respect are partners in another,” said Eilenberg.
Roku certainly faces challenges, as despite total revenues and user base numbers tracking well ahead of analysts’ fourth quarter predictions this week, its stock fell as shareholders quibble over the downturn in the digital ad market. However, Roku is focusing on international expansion, due to its belief AVoD and FAST channels will dominate the future of entertainment and has outlined bullish plans for original shows. It is currently available in the U.S., UK, Canada and Mexico, where its first Spanish-language service recently went live.
“There’s been extraordinary growth in FAST channel viewing,” said Eilenberg. “It’s both true for us and across the AVOD sector — some of it is for news and weather but some is curated show channels. If you know you have enough hours to populate a FAST channel and the viewership who wants it, you’re always
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