• by Wayne Friedman , Yesterday

Competitive concerns over the proposed $22 billion Fox Corp.-Roku merger are now focused on two free streaming channels: Tubi and the Roku Channels, according to analysts.

This comes as the U.S. Department of Justice (DOJ) is planning to seek more information via what is known as a “second request” about the deal in a securities filling that Fox disclosed on Wednesday. 

There has been a general concern among Fox Corp. competitors that Fox content will get a favored position on the Roku streaming distribution system, according to analysts.

Roku has a dominant position in the marketplace, with a scale of over 100 million monthly active U.S. users.

Fox representatives did not return inquiries from Television News Daily by press time.

Lachlan Murdoch, chief executive officer of Fox Corp., said it was likely the Fox-owned Tubi and Roku Channel -- the FAST (free advertising-supported streaming television) channels -- would be operated separately. 

“If you look at Tubi and the Roku channel together, they are incredibly complementary services,” Murdoch said in June on a call with investors.

“It’s too early to say, but our expectation is fully that you keep the services separate. They serve consumers and our viewers in different ways.”

Concerning the DOJ story, Michael Morris, media analyst of Guggenheim Securities said: “We continue to believe clearance is the likely outcome, and note that Lachlan Murdoch's stated expectation of operating Tubi and the Roku Channel separately broadly aligns with the shape of a typical consent decree.”