Netflix 2020 Inside innovations

How Roku Built Itself Into a Major Gatekeeper in Premium Streaming

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variety.com

Todd Spangler NY Digital EditorIn virtual deal talks over the past several months, Roku execs have delivered a basic message — in not so many words — to WarnerMedia and NBCUniversal negotiators: You need us more than we need you.So far, Roku is refusing to cede ground on deal terms to add WarnerMedia’s HBO Max and NBCU’s Peacock to its popular streaming platform.

Roku’s standard ask is 20% of subscription fees and 30% of ad inventory on partner channels. That ad split has been a nonstarter for Peacock, which is loading 5 minutes (or fewer) of advertising per hour.

WarnerMedia, meanwhile, wants to retire the legacy HBO service sold through The Roku Channel to have HBO Max available as a standalone app, at which Roku has balked.

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