This time next year, Fox Corporation CEO Lachlan Murdoch intends to add Roku to his already expanding media empire. Should the acquisition go through, Fox will gain control of Roku’s modest library of original programming, and the newly merged company will become the “third largest player in US television” in terms of viewership share. But the most important thing Murdoch bought with the deal was direct access to the 100 million households that make up Roku’s user base.
It’s because Roku and Fox are very different types of companies that a merger between the two could have a huge impact on our modern media landscape. Murdoch is keen to set the tone for the situation – the platform will remain “open” and “partner friendly,” according to the announcement – but it’s more of a corporate merger event that will reshape what consumers look at, perhaps without even realizing it.
Fox’s desire to acquire Roku makes sense when you remember how long Murdoch has been trying to establish a strong presence in the broadcast wars. In 2020, Fox bought the free, ad-supported (FAST) platform Tubi, and last year, the company launched its own subscription service focused on news and live sports. After news of the deal, Murdoch told investors that he plans to keep Fox and Roku operating as two separate entities. Roku Channel (Roku FAST’s signature service) may not be completely wrapped up in Tubi, but Murdoch has plans to make Roku the gateway to all things Fox.
Both Murdoch and Roku founder, chairman, and CEO Anthony Wood have made it clear that Fox-branded content will feature prominently on Roku’s homepage after the acquisition. Wood told investors that “developing properties owned by Fox and used on the Roku home screen” is a key element of the companies’ plan to grow profits. Murdoch added that he expects Roku’s viewership to grow in the US mainly due to the presence of Fox content on the service. Movies and series produced by other companies will not completely disappear from the site because the breadth of Roku’s current library is a key part of its appeal to consumers. But it sounds like Fox Sports and Fox News will be some of the first things people see whenever they interact with Roku’s technology.
The beauty of Roku as it currently exists is its simplicity compared to its competitors. When you open the Roku app, it gives you a small selection of top picks, a list of other streaming services you can access through Roku, and one big ad — all of which make it feel like the interface is gently trying to help you find things to watch. But during their investor call, Murdoch and Wood emphasized that they want to make more money from ads on Roku’s home screen by including more Fox content. And that kind of push could effectively turn Roku into a place that feels more politically aligned with its owner.
Roku’s value is in its infrastructure and consumer viewing data
Murdoch is trying to do something different with Roku, whose value lies in its infrastructure and consumer viewing data as opposed to the films and series it makes. Murdoch can’t get strong rivals like Apple and Amazon to release programs that align with his political views. And removing third-party subscription services from Roku will push consumers to other streaming devices. Instead, it appears that Murdoch wants to use Roku’s digital real estate to expose Fox’s content to as many viewers as possible. It’s hard to imagine every Roku user suddenly turning to Fox News, but most people do the will see if the platform makes that program easily accessible.
This scenario — millions of viewers casually consuming Fox content because it’s delivered to them — makes sense given how Roku has already established itself in the broadcast space. People didn’t buy their televisions using Roku thinking they were inviting the Fox Corporation into their home. But that’s exactly how all this will shake out if Murdoch gets his way. Given Murdoch’s relationship with Trump and the administration’s commitment to pushing the media to the right, it seems likely that Roku will soon become a Fox company. And while consumers may not be able to do anything to block the deal, there are still other streaming platforms they can jump on.
