No more light bulbs, more sports: Five predictions for Roku’s future

This is it Low corridor By Yanko Rutgersa newsletter about the ever-evolving intersection of technology and entertainment, published specifically for Edge Subscribers once a week.

when Fox announced its acquisition of Roku Earlier this week, executives at both companies were quick to promise that not much would change in the near future. Acquiring Roku would certainly help Fox become a major force in streaming, surpassing Netflix’s U.S. viewership when you include the Fox TV networks. But Roku will remain open to all streaming services, and Fox will continue to sell its programming to anyone, they pledged.

Of course, this does not mean that everything will remain the same. I expect the deal will have a major impact on both companies, and that Roku owners will see big changes once it closes. Here’s what I think is in store for Roku’s future:

The Roku Channel will become an exclusive Roku channel

One of the questions asked by analysts on a joint call between Fox and Roku investors earlier this week was: What does this deal mean for the future of Tubi and The Roku Channel, the ad-supported streaming services run by the two companies? The diplomatic answer: The services are integrated, with Tubi offering mostly on-demand movies and TV shows while The Roku Channel has a much larger number of free, ad-supported channels (also known among industry insiders as FAST channels).

This is true to some extent. Tubi’s leadership did not initially believe in the potential of linear channels and instead focused more on being a free alternative to Netflix. Roku, on the other hand, had deeply integrated its programming into smart TVs and knew it could build an alternative to cable guide if everything ran through linear streaming channels.

Meanwhile, Tubi Channel and The Roku Channel compete directly with each other on third-party platforms like Fire TV, Google TV, and Samsung, where consumers can download either app to access free programming. Roku expanded into those platforms a few years ago, but that expansion has continued to confuse consumers. a lot simply I cannot Understands Why doesn’t the Roku app they downloaded on their Samsung TV or Fire TV give them exactly the same experience as a Roku device.

Another reason for frustration: Roku offers its device owners the ability to subscribe to third-party services like HBO Max and Paramount Plus through the Roku Channel. But if they run the Roku Channel app on a Samsung TV in their bedroom, those subscriptions will be paid She is MIA.

To simplify all of this, I expect Fox to choose to make The Roku Channel an exclusive Roku channel, betting on Tubi as the only app for ad-supported viewing on third-party devices.

Roku will abandon its IoT efforts

Over the years, Roku has tried many things to launch an ecosystem of devices around its platform. There was a streaming optimized mesh router that never turned on, and Smart speakers that have been sidelined In recent years.

More recently, Roku has bet big on low-cost cameras, flashlights and alarm systems. It all made sense when the company was trying to go it alone and compete with companies like Google and Amazon. The fear was that consumers might choose competing products if they couldn’t access their security camera feed on their Roku TV.

For Fox, the Internet of Things is little more than a distraction. The margins on these products are so low, there are easier ways to get people to watch more Fox programming than to launch another smart plug. That’s why I expect Roku to phase out its own IoT products and instead adopt the Matter standard to work more easily with third-party devices.

Hello will become an unexpected hit

Fox has been a bit of an outsider in the streaming wars. Companies like Disney and Warner Bros. have spent Discovery is investing tens of billions of dollars to create paid streaming services to catch up with Netflix. Instead, the Murdoch empire waited on the sidelines and bet on Tobi as a free streaming alternative.

Aside from Fox Nation, the company’s first real paid streaming service was Fox One, a sports streaming service that launched less than a year ago. This wait-and-see approach is very similar to that of Roku, which has long emphasized ad-supported streaming over paid subscriptions. The first paid service created by Roku internally is Hello, low-cost streaming device Meet the needs of budget conscious consumers.

At $2.99 ​​a month, Howdy is unlikely to become a major money-maker for Fox. However, I expect Fox to treat Howdy as a wild bet: another way to monetize its content and a good opportunity to penetrate and undercut the competition. With this strategy, and with access to Fox’s huge catalog of popular TV shows, I expect Howdy to turn into an unexpected hit with consumers wary of too many ads.

Roku will double international expansion

Fox gave up some of its international ambitions when it sold its Sky stake to Comcast in 2018 and shed more overseas assets when Disney bought 21st Century Fox the following year.

Since then, Fox has made some efforts to expand overseas again with Tubi, now available in Canada, Australia and Latin America. These are the same markets that Roku has also targeted for its international expansion, with some success: Roku He claims that The No. 1 streaming platform in Canada and Mexico, its hardware partners now sell Roku-branded TVs in more than 15 countries.

However, at its core, Roku, like Fox, is still a US-centric company. In it Annual report 2025The company revealed that more than 90 percent of its device revenues still come from the United States. The same is true for advertising and services revenue, with the report noting that “we currently generate the vast majority of our revenue in the United States.”

Roku has been cautious in ramping up international expansion, especially in Europe, where Amazon has a much stronger foothold with Fire TV, to keep costs under control. With Fox’s support, I expect more aggressive moves in offshore markets alongside TOBI. Both Roku and Tubi can help build scale for Fox’s streaming efforts. Fox could benefit from these efforts once millions of consumers become addicted to free software and affordable televisions.

Sports will be front and center on Roku

It’s hard to ignore the Fox One sports streaming service these days, especially if you’re trying to follow World Cup matches. I expect Fox to double down on this momentum and tightly integrate Fox One with Roku. This doesn’t mean Fox One will become exclusive to Roku. Instead, you’ll find sports programming and deep links to the sports streaming service everywhere, including Roku’s newly redesigned home screen and features. Sports areas.

In other words: Don’t be surprised to see Fox build a stadium in Roku City.