Saturday, January 26, 2019

Free Streaming TV is taking hold

Roku was the only online streaming service that wasn't based on the subscription service whereas other companies tried to create stickiness with the customers like Netflix, Hulu and even Amazon Video as a part of Prime membership benefits.  Other developing countries with more price sensitive consumers already embrace the model of free TV subsidized by the ads and it makes sense that Roku is following the same model in the US. Given the success of the Roku, Viacom acquisition of the Pluto TV is a viable strategy to the market.
The streaming subscription model could a winner take all market with Netflix likely to raise prices or even introduce ads, so it's refreshing to see that free streaming TVs combined with digital advertising is a viable plan to reach a large number of consumers.

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