• by Wayne Friedman , December 19, 2023

Expect more streaming platform aggregators to take on companies like Roku soon -- especially longtime cable TV operators, predicts Pivotal Research Group.

“The importance of the streaming aggregator position is attracting significant competition with Charter and Comcast as an example just finally rolling out their Xumo streaming aggregation solution,” writes Jeff Wlodarczak, media analyst of Pivotal. “Over time we would not be surprised to see others follow suit.”

Wlodarczak believes these companies have a strong selling point -- which is that they can package other communications services, including broadband and mobile -- something that Roku currently does not have.

And while cord-cutting still plagues traditional pay TV companies, cable operators still significant reach to modern video consumers:  “The advantage cable players have -- even with their admitted lateness to the party -- is their control of the dominant broadband pipe in 60% of the U.S.”

Financially, the recent launch of Comcast/Charter's Xumo streaming service will benefit from potential advertising growth: “The inventory of streaming advertising is set to expand significantly as all streaming players move to add advertising tiers.” 

However, Wlodarczak cautions that as Amazon continues to make a major push into advertising, it could put pressure on ad pricing. 

On the flip side, smaller and mid-sized streaming players and individual services could see some financial and business fallout.

“Over time there will either be consolidation among streaming players (or players shutting down their streaming offerings altogether) enhancing the power of the remaining streamers over distributors, such as Roku, and potentially reducing revenue streams.”

Increasingly, positives for Roku are that Roku has 50% penetration of broadband households in the U.S. and that it has “arguably the best product of any streaming aggregator,” says Wlodarczak.