Roku and Google reach agreement with YouTube

A remote control from Roku Inc. in an arranged photo in Hastings-on-Hudson, New York, May 2, 2021.

Tiffany Hagler-Grear | Bloomberg | beautiful pictures

Roku shares were up about 8% Wednesday morning after it said it struck a multi-year deal with Google to keep YouTube and YouTube TV on its streaming platform.

The deal will allow 56.4 million active Roku accounts to continue watching YouTube and YouTube TV, Google’s live streaming service, without interruption.

Google previously threatened to pull both YouTube and YouTube TV shut down Roku on December 9th. Chariot war attract the attention of Congress, which is trying to curb the power of big tech companies like Google.

“We’re pleased to share that we’ve reached an agreement with Roku to continue distributing the YouTube and YouTube TV apps on Roku devices,” said Mariana De Felice, a YouTube spokeswoman.This means that Roku customers will continue to have access to YouTube, and the YouTube TV app will once again be available in the Roku store for both new and existing members. We are happy to have a partnership that benefits our common users. “

The agreement avoids YouTube outages, which could lead to significant customer runaways for Roku. Rivals like Amazon Fire TV and Apple TV carry YouTube.

“Roku and Google have agreed to a multi-year extension for both YouTube and YouTube TV,” Roku said in a statement. “This agreement represents a positive development for our shared customers, making both YouTube and YouTube TV available to all broadcasters on the Roku platform.”

Terms of the agreement were not disclosed.

Negotiations between Roku and YouTube turned contentious over the ad income needs of both sides. Roku requires a percentage of advertising to sell to its customers in each contract of carriage it negotiates. YouTube, second most visited site around the world, dominate online viewing, and have the popularity to push back against Roku’s claim. Roku claims that Google tells Google to prioritize YouTube content over other providers’ content in the company’s search results.

“For too long, the big tech platforms have leveraged their power to prioritize their products and services over those of thousands of smaller online businesses.” Senator Amy Klobuchar (D-MN) said in a statement in October Roku support. “They said ‘just trust us’, but experience has shown that we cannot rely on these companies to act fairly in the marketplace.”

However, Roku had a reputation as a tough negotiator. It reaches agreement with NBCUniversal‘NS Peacock and WarnerMedia’s HBO Max months after each streaming app is publicly launched.

Clock: Jim Cramer on Roku Roku and Google reach agreement with YouTube


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