Juan P. Delgado of Day Pitney: “The Industry Increasingly Recognizes The Strategic Value Of Controlling Distribution Alongside Content”

FOX’s estimated US$22 billion acquisition of Roku, announced in June and expected to close in the first half of 2027, suggests “that the industry increasingly recognizes the strategic value of controlling distribution alongside content,” says Juan P. Delgado, co-leader of the Sports, Media and Entertainment practice at law firm Day Pitney in Miami. “While premium programming remains essential, owning the platform where millions of viewers begin their streaming experience provides access to a captive audience and creates new opportunities for content discovery, advertising and consumer engagement,” Delgado said.

Delgado notes that for FOX, Roku represents much more than a technology platform. “It is an established ecosystem that expands the company’s ability to connect its content with viewers and reflects a broader industry shift toward creating a more integrated viewing experience, where consumers can more easily discover content across multiple services. Since FOX already owns Tubi, it will be interesting to see FOX’s plans for the two services, which appear to be highly complementary,” he said.

PARTICIPATION AT MULTIPLE LEVELS OF THE VALUE CHAIN

Delgado says the combination gives FOX and its existing platforms the opportunity to participate at multiple levels of the streaming value chain, including content, distribution, advertising and consumer engagement.

Advertising is particularly relevant, he noted, as virtually all major streaming platforms have adopted ad-supported tiers, reflecting growing consumer acceptance—especially among younger audiences, who are willing to accept advertising in exchange for lower subscription costs or free content.

“Integrating these capabilities allows FOX to diversify its revenue streams while gaining greater insight into audience behavior. This integrated approach has become increasingly valuable as the streaming market continues to evolve,” he said.

A COMPETITOR TO AMAZON, GOOGLE AND APPLE IN CONNECTED TV

Delgado says FOX’s acquisition of Roku strengthens its position in the connected TV market, particularly in ad-supported television, “although it would be premature to put it on the same level as Amazon or Google. Roku is already an established player, and this transaction provides additional resources and strategic direction that could strengthen its competitive position over time. As the market continues to mature, the combination gives FOX a stronger foundation to compete within the connected TV and ad-supported ecosystem.”

WAVE OF CONSOLIDATION

For Delgado, the transaction reflects a broader industry trend toward combining content, platform technology, distribution and advertising under a single corporate structure.

Media companies continue to look for ways to strengthen their competitive positions as streaming becomes increasingly important to their business models, he said.

“This type of acquisition could prompt other companies to pursue similar strategic combinations to achieve greater scale and operational efficiency. At the same time, transactions of this kind are likely to continue facing close regulatory scrutiny,” he said.

He cited the recent inclusion of Peacock Premium directly within YouTube Premium as a good example of the movement in this space. “While it is not a merger, it does give YouTube customers access to a significant offering of live and other content,” he noted.

MAINTAINING THE BALANCE

Asked whether FOX would give greater visibility to its own apps and content within Roku once the acquisition is completed, Delgado said it is likely, but in a manner similar to how other vertically integrated media companies promote their own programming.

“At the same time, Roku has built its business as a platform that gives consumers access to a wide range of content providers. Maintaining that balance will be important, both from a business standpoint and in addressing competitive considerations,” he explained.

How FOX manages that balance will be one of the most interesting aspects of the acquisition, he said. “Many speculate that Roku could have an inherent bias toward FOX content if the transaction closes. Ultimately, Roku has strong incentives to continue working closely with third parties, as it relies on them to generate subscription and advertising revenue,” he said.

He added that for Netflix, Disney+, Max, Paramount+, Peacock and ViX, the transaction will not necessarily alter their dynamics simply because Roku has a new owner. “Ultimately, reaching audiences broadly and efficiently remains a shared goal across the industry,” he noted.

The FOX-Roku deal could also further reinforce the growth of FAST services by expanding opportunities to distribute and monetize this type of content within an established platform, he added.

MEXICO AND LATIN AMERICA

Asked about Mexico, where Roku has a significant presence and which is one of Latin America’s most important streaming markets, Delgado said the existing audience gives FOX an opportunity to introduce more of its content to the region without having to build a new distribution network from scratch or rely on traditional pay-TV packages.

“The transaction provides a stronger platform to expand audience reach across Spanish-speaking markets, particularly Mexico,” he said.

OPPORTUNITIES FOR ADVERTISERS

Regarding opportunities for advertisers, Delgado said the transaction could generate additional advertising opportunities by combining FOX’s content portfolio with Roku and Tubi’s existing device footprint, audience base and market penetration.

“It could also provide greater flexibility in how content is distributed across licensed platforms, streaming services and ad-supported offerings. For advertisers looking to reach Hispanic and Latin American audiences, a broader distribution ecosystem could facilitate more targeted and integrated campaigns,” he said.