Why Netflix Buying Roku Helps Amazon, Apple (and Maybe Google)

A potential deal between Netflix (NFLX) – Get Netflix Inc. Report and Roku (ROKU) – Get Roku Inc. Report sent shares of both companies higher. That’s likely because investors see the synergies between the two companies — Netflix makes content and Roku distributes it — but this acquisition would actually rob Roku of its biggest advantage.

Currently, Roku does not produce content in a meaningful way. It has plans to do that in a small way, but it’s not going to produce content that competes with the many companies whose television shows and movies it distributes.


Leave a Comment