Fox's Roku Acquisition Targets Streaming Viewership Growth
Fox is making a significant acquisition by purchasing Roku, aiming to expand its presence in the free, ad-supported streaming sector. This strategic move could position Fox to achieve a larger TV viewership share than Netflix, capitalizing on the rising popularity of free streaming platforms like Tubi and The Roku Channel. The acquisition is projected to establish Fox as one of the leading TV distributors in the United States by monthly viewership.
Fox CEO Lachlan Murdoch is orchestrating a major acquisition of Roku, a move designed to substantially boost the company's streaming presence, particularly in the free, ad-supported streaming market. The integration of Roku's free streamer with Fox's existing assets is anticipated to grant Fox a larger overall TV viewership share than Netflix.
According to Nielsen's March data, the acquisition would position Fox as the third-largest TV distributor in the U.S. by monthly viewership. This would increase to a 10% viewership share across its broadcast network, cable channels like Fox News and Fox Business, its free streamer Tubi, and The Roku Channel. Fox also owns paid streamers Fox One and Fox Nation, and would gain control of Howdy, Roku's $3-per-month streamer launched last August.
Fox's strategy contrasts with rivals who invested billions in mass-market streamers. Instead, Fox offloaded its studio, Hulu stake, and content library to Disney for $71 billion in 2019, choosing to focus on live TV, sports, news, and cheaper scripted game shows like "The Masked Singer." The company also acquired Tubi for $440 million in 2020, a service popular with Gen Z and known for its catalog of older and offbeat shows.
Free, ad-supported streaming services like Tubi and The Roku Channel have seen increased popularity as paid streaming platforms have raised prices. Tubi reportedly generates more monthly viewership than paid streamers such as Peacock and HBO Max. Roku's free streamer is even larger than Tubi, attracting more viewership than any premium video service except Netflix, the combined Hulu-Disney+, and Prime Video.
While viewership is a key metric, it is not the only factor. Netflix reported nearly $4 billion in operating income last quarter and had over 325 million subscribers by the end of 2025. Although Tubi became profitable last year, its revenue does not currently match that of Netflix. Hollywood companies are exploring ways to enhance engagement as free services gain traction among consumers.
According to Business Insider, paid streamers are increasingly incorporating short-form video and video podcasts to add value and encourage more frequent app usage.
