00:00Roku is coming off two and a half percent, which is interesting because it's the one getting bought by Fox,
00:07which itself is down 20 percent.
00:09So that's a deal that Danny's going to give you. Yes, I would say Roku Bloomberg did have a report
00:14that this would happen on Friday and Roku was up 20 percent then.
00:18So by the rumor, yeah, by the rumor, sell the news. And we are selling Fox hard.
00:22That's actually on track for its worst day ever. Let's talk about it with Bloomberg Intelligence media analyst Geetha Raghunathan,
00:27who joins us now.
00:28Now, Geetha, Fox clearly making some sort of streaming play here to you. Does this deal make sense?
00:33It makes a lot of strategic sense, Danny, because Fox is one of the media peers that has really kind
00:39of stayed away from streaming.
00:40So they have almost 90 percent of their revenue comes from the linear TV ecosystem, which, as you all know,
00:46has been in secular decline.
00:48And so this deal, I think, definitely helps them kind of reshape, reset that narrative a little bit, really gives
00:54them that gateway into streaming.
00:57So strategically, yes, makes a lot of sense. Yeah.
01:00100 million users was the milestone they passed this year. Right.
01:04So Roku, I would have thought of it as an ad play, but it's really the fact that they're buying
01:10100 million users for three point six billion dollars, isn't it?
01:15Yes, absolutely. So Roku is really this aggregator in the streaming ecosystem.
01:19And that's really what Fox is buying into. Absolutely, they do have a great ad business as well.
01:24And if you look at Fox right now, they make about one, $1.2 billion in digital advertising.
01:29This deal with Roku helps them effectively kind of quadruple that.
01:33But it's not just that. It's really, as you pointed out, the access into those 100 million global streaming households,
01:38which Roku provides,
01:39and almost 50 percent of all U.S. broadband households.
01:43So really, it's them kind of being able to now get their content to really where the eyeballs are moving,
01:49because with that exposure to the linear TV ecosystem, you know, you have more and more people migrating away from
01:54TV and to streaming.
01:56And you want to be where, you know, the viewer is.
01:58By the way, is this the biggest competitor to Apple TV in terms of that box, in terms of something
02:04you add to your TV that allows you to get Netflix, Amazon, Hulu, Disney, everything?
02:11Yes. Roku by far has is the leading connected TV device provider.
02:17They have almost close to about a 30 percent share of the streaming market.
02:22So, yes, again, you know, not only do you get access into all those, you know, living rooms, but you
02:28also get access to very, very valuable third-party data,
02:32which then, of course, helps you to do so many things, notwithstanding targeting, you know, monetization from an advertising perspective,
02:39and a whole lot of other things.
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