When you turn on your television, how do you decide what to watch first? YouTube, Netflix and Disney+ are among the most popular individual video platforms. But the growing answer dictating your TV selections may very well be Roku, Amazon Fire and Apple TV. Why? Because these companies are controlling distribution, not just content programming. All three operating systems house the streaming services and apps we use daily. That’s what makes Fox’s acquisition of Roku so compelling. It’s a bet one level up from the streaming wars. Rather than competing directly with Netflix, Disney+ and HBO Max, Lachlan Murdoch is moving to own the monetizable distribution layer of entertainment alongside Amazon and Apple.
Earlier in the streaming wars, individual services fought over content. Everyone wanted the biggest shows that built the largest subscriber bases. Netflix’s Stranger Things, Hulu’s The Handmaid’s Tale, and Amazon Prime Video’s The Boys—breakout originals that attracted new customers en masse. The all-consuming cultural maw of HBO’s Game of Thrones spurred rivals to throw tens of millions of dollars at splashy IP. Marvel, Star Wars, DC and Lord of the Rings.
These programming skirmishes are still ongoing, but on a smaller scale. As the industry matures, focus has somewhat shifted away from individual content lineups and towards controlling discovery, recommendations and placement. That’s where real power and value lie. Roku, Amazon Fire TV, Apple TV, Walmart’s Vizio are all operating systems that house the YouTubes, Netflixes and Disney+s of the world. Those watching Paramount+’s Landman or HBO Max’s The Pitt are likely doing so via one of those companies’ devices.
Imagine the TV operating systems are like properties in Monopoly, and the…