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Roku informed its users via email on Monday that YouTube TV could be kicked off its platform altogether, alleging anti-competitive demands by Google, including requests for preferential treatment of its YouTube TV and YouTube apps.
Why is this important: This is one of the first major disputes over anti-competitive behavior in the age of streaming. Unlike most streaming TV fights, Roku says he’s not asking for more money, but better terms regarding Google’s anti-competitive claims – like being asked to favor Google products in the results. Roku search.
- Roku and Google compete on a number of fronts, including Smart TV hardware devices, Smart TV operating systems, and Smart TV content.
- The transport contract between the two companies will expire shortly.
Details: Roku says Google is threatening to take down YouTube TV to force Roku to grant preferential access to its consumer data in the future.
- He says Google has asked Roku to do things it doesn’t see replicated on other streaming competitor’s platforms, like creating a dedicated search results row for YouTube in the Roku Smart TV interface and give YouTube search results a more visible placement.
- Roku says Google has also instructed it to block search results from other streaming content providers while users are using the YouTube app on Roku’s system.
- Roku alleges that Google asked him to favor YouTube music results from voice commands made on the Roku remote when the YouTube app is open, even though the user’s music preference is set to another music app by default, like Pandora.
- Roku claims that Google has threatened to require Roku to use certain chipsets or memory cards that would force Roku to raise the price of its hardware product, which competes directly with Google’s Chromecast.
Be smart: A key issue for Roku – other than being asked by Google to manipulate search results that promote Google’s products – is that it believes Google is trying to tie the YouTube TV distribution contract renewal with Roku to enforce additional anti-competitive advantages to Google’s separate YouTube app. .
The big picture: The allegations come in connection with historic Google antitrust investigations by the Department of Justice, state attorneys general and Congress over Google’s dominance in search and advertising.
- “Google is trying to use its monopoly position on YouTube to force Roku to agree to predatory, anti-competitive and discriminatory terms that will directly harm Roku and our users,” a Roku spokesperson said.
- “Roku is not asking Google for a single extra dollar in value. We simply cannot agree to terms that would manipulate consumer search results, increase the cost of our products and violate established industry data practices. “
Between the lines: A spokesperson for Roku said Google had “so far refused to accept” its proposal to expand YouTube TV to Roku while agreeing to its terms. Roku claims the company is ultimately seeking a deal with Google.
What to watch: Roku’s standoff with Google is the latest in a long list of disputes between streaming TV distributors and streaming networks over distribution deals.
- For consumers, this means that the programming blackouts that have become increasingly common on cable and satellite TV are migrating to the world of streaming.
Read Roku’s email to customers:
Go further: TV battles turn to streaming
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