Fox’s Roku Acquisition Is Bad News for TV Lovers—Here’s Why

Fox's planned acquisition of Roku is more than just another corporate deal. It's the latest move in a years-long wave of media consolidation that's steadily drained the excitement and consumer freedom out of streaming TV.

With minimal advertising or interference, Roku has long provided a reliable gateway to Netflix, Disney+, HBO Max, and all the other apps a user has downloaded. The straightforwardness of Roku devices helps explain the brand’s dominance in the streaming device market, serving upwards of 100 million households worldwide.

Unfortunately, it’s looking like Roku may soon get rebuilt in Fox’s image. If the acquisition goes through, Fox won't just own more content platforms — it will own one of the most popular ways people access that content. And that's bad news for regular TV and movie lovers like you and me, because it means more advertising and fewer options in our beloved streaming spaces.

So how will this $22 billion corporate acquisition affect Roku customers? It’s hard to say exactly since the deal hasn’t gone through yet, but we have some ideas. Let’s dig into the details.

According to a press release, the Fox Corporation is planning to buy Roku for $22 billion in cash and stock. Trade publications have reported the news with breathless glee, fixating on what a boon this could be on pure business terms.

Assuming the deal goes through, here’s what it would give Fox, according to analysts:

• A fully integrated platform with a built-in audience of 100 million-plus subscribers.
• Additional advertising revenue for Fox’s TV divisions, especially sports and news.
• More eyeballs for Fox One, the company’s streaming service, which has suffered from underwhelming reviews.
• Greater leverage over the growing market for free ad-supported streaming television (FAST). In addition to Tubi, Fox will now own The Roku Channel, another popular free service.

Look, this deal is awesome news — for the Fox Corporation. I’m sure the shareholders are going to make a lot of money. But, um, what about the rest of us? It’s not the worst news possible, but it does mean fewer options in the streaming space, more Fox ads in our faces, and possibly higher prices in the long run.

A report about the deal from Forrester, a market-research company, lays out the ominous implications: “If this deal closes, Fox will control more of what viewers watch, how they discover it, and how it gets monetized.”

People typically use the term “cut the cord” to describe the liberating feeling of canceling an overpriced cable TV package, but these days the streaming landscape increasingly resembles the cable oligarchy of yore. A recent survey put together by our analysts at Reviews.org underscored customers’ growing frustrations.

Here are the survey’s findings:

• 58% of consumers feel their total monthly streaming costs have gotten too high.
• 49% feel the content available on streaming services has gotten worse.
• 55% have re-subscribed to a service they previously canceled.

To sum it up: Customers think streaming is more expensive and less engaging, but they still pay for it. Assuming the deal goes through, Fox’s takeover is bound to further limit what you can watch and how much you pay for it.

I've owned a Roku Streaming Stick+ since 2021. Plugged securely into my LG TV, it works as effectively as an Ikea bookshelf: self-explanatory, easy to use, and even somewhat decorative. (Who hasn’t gotten hypnotized at one time or another by the magenta hues of the service’s Roku City screensaver?)

On a granular level, Fox’s takeover could mean a handful of changes are on the horizon for this Roku experience. Not all of them are bad things — and some might even be beneficial. Basically, it boils down to seeing the Fox logo more frequently on your Roku app.

Here’s what to expect:

• A Fox One button could appear on Roku remotes.
• Fox-owned titles are more likely to appear in the “Top Picks” section of the home screen. That means more ads and recommendations for “The Masked Singer,” “Family Guy,” and “Bob’s Burgers.”
• Tubi will get more prominent billing on the app. Some online content creators say this can benefit YouTube personalities and other influencers, who already get promoted on the free service.
• If the consolidation train keeps moving, Tubi and The Roku Channel could eventually combine into one in the same way that Disney+ is now absorbing Hulu.

Roku lovers don’t need to panic: Roku’s hardware isn’t going to change any time soon. Fox’s buyout of Roku likely won’t be finalized until 2027. Both companies’ boards of directors have unanimously approved the deal, according to Fox’s announcement, but there still needs to be approval from regulators and shareholders.

That means you should expect the same simple and reliable user experience on a Roku app. At least for the time being.

Still, I’ve found there are bigger issues with streaming devices that may not get solved with a corporate takeover. Over the years, I’ve had consistent problems with the audio and video falling out of sync on TV shows and movies that I stream over my Roku. That’s just one of several issues that have kept coming up for me on various streaming devices.

The TV industry has standards in place to allow for integration between streaming devices and TV sets, including protocols like Consumer Electronics Control, or CEC. But the average TV viewer isn’t familiar with the nuts-and-bolts of this technology, and HDMI hookups don’t always work as smoothly as they should. If you’re not replacing your equipment every year or two (and you shouldn’t have to!), it’s likely you’ve had a buggy experience. 

There’s no reason to ditch your Roku right now. It’s going to work the same as it always has, and if you like it, then keep it.

But it may be worth looking into getting a new Roku, or a new streaming device altogether after Fox fully takes over the brand. Even top-rated streaming devices cost as little as $25, and many smart TVs already have on-demand streaming platforms and apps built into them.

With this deal on the horizon, it makes sense why Gen Z has turned to YouTube instead of traditional TV and movies. A Fox-Roku deal is good for Fox, but the rest of us may eventually find other stuff to watch and other devices to watch it on.