Tag: video platforms

Et tu, Roku?

First, I apologize for being incommunicado these past many months, but – you know – life interferes sometimes. That being said…

I read this article this summer and have been wanting to comment on it based on a long-standing prediction I’ve had about the place of Roku in the streaming entertainment universe. Roku is akin to Amazon Fire and Google Chromecast in its ability to access the world of OTT (Over The Top) streaming entertainment, offering a simple installation at a reasonable price, especially when compared to traditional cable packages. This may account for the increase in the number of so-called “cord cutters” that are causing tumult in the cable industry.

I’ve been expecting Roku to eventually join the ranks of Amazon and Google in providing their own proprietary entertainment programming, so as to increase its leverage over competitors. Of course, it now has the benefit of being a non-threatening  provider of access to channels like Amazon Prime, Google TV, Netflix, Hulu, and others, but it would certainly be an enticement if there were programs that you could only get from Roku. And with the addition of terrestrial and cable broadcasters to the streaming universe, it is beginning to look a lot like the old “ala carte” future we were anticipating so many years ago. Before long, our entertainment programming costs may rival that of cable subscriptions, but with the difference being that you select what’s in the package.

So, again I reiterate my prediction that Roku will enter the ranks of streaming companies, as opposed to simply being a streaming enabler. Yes, you can get a Roku that will allow you to access the wide range of streaming entertainment providers, but I sincerely believe that the lure of being a producer will be too strong that Roku will have to begin producing its own content. It’s either that or become a acquisition target of a better-financed streaming/media company.

Hello, Disney or Sony?

Where is this all heading?

I’ve been watching with deep interest the progress of various video platforms as they emerge and develop, from YouTube and Netflix to Twitter and DirecTV Now. Here’s a brief rundown of a few of them from eMarketer that should give you an appreciation for the current state of flux, as well as the huge potential for coming disruption in the marketplace.

It seems that first we had simple websites that provided a platform, notably YouTube and Vimeo. Then we saw the TV Everywhere approach from HBO Now, as well as non-cable providers like Netflix, Hulu and Amazon. There’s a move to applications that can provide video content, from sports leagues to Twitter and Facebook. But it is such a tangled web that there is no clear indication as to where it will all shake out.

I suspect that a combination of advertising strength with high-demand content will drive this initially. Those platforms with which advertisers are comfortable (YouTube, Facebook, etc.), and content that is both timely and popular (primarily sports), will be the leaders in the transition that is currently underway. This is a chapter that is very much being written, and companies will rise and fall depending on their ability to forecast and anticipate the trends. But this much continues to be clear: Those who control the rights to this content (sports, awards) will control much of the destiny, and those who must pay for licensing  those rights will face increased price pressure in the coming days (witness ESPN’s effect on Disney stock).

Discuss…