Are Netflix and Roku a Match Made in Heaven?

As Netflix (NASDAQ: NFLX) prepares to launch its ad-supported tier, rumors have swirled that an acquisition could be in the company's future to make the transition easier. One company that analysts have repeatedly mentioned as an option is the hardware and streaming service Roku (NASDAQ: ROKU). Here's why Netflix would greatly benefit from joining forces with Roku. 

At the Cannes Lions advertising festival on June 23, Netflix Co-CEO Ted Sarandos confirmed that the company would launch an ad-supported tier soon. Sarandos explained, "We've left a big customer segment off the table, which is people who say: 'Hey, Netflix is too expensive for me, and I don't mind advertising.'" 

After losing 200,000 subscribers in the first quarter of 2022, Netflix is looking at new ways to attract members. An ad-supported tier is a potentially lucrative way to do so, and few companies have the relative experience that Roku does. Initially launching in 2008 as a collaboration with Netflix, Roku offers a variety of TV-related devices, software, and The Roku Channel -- the company's streaming service.

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Source Fool.com