Netflix could be about to buy Roku.
The streaming giant is reportedly set to buy its fellow media service and the subject of the purchase is said to have become "focus of internal chatter" amongst employees at Roku, according to BusinessInsider.
A business insider told the outlet: "It makes sense with where Netflix wants to go. And it makes sense in this current environment. Everyone is looking around thinking, 'I was worth twice as much last year. What happened?"
One senior-level employee of Roku also added that the supposed sale would "align well" with Netflix's in terms of their current position in culture as they try to get in on the market of "advertisement-based" streaming.
The employee said: "The sale would align well in terms of Netflix's culture, business, and current valuation. Netflix is trying hard to get into the advertising-based video on demand and Roku has it."
The rumours come just months after Netflix CEO Reed Hastings admitted that the streaming service was "open" to the idea of offering users an advertisement-based streaming plan.
He said: "Netflix are now quite open to offering even lower prices with advertising, as a consumer choice. We are trying to figure it out over the next year or two. The idea of offering an ad-based subscription makes a lot of sense for consumers who would like to have a lower price and are advertising tolerant."
Meanwhile, after the news that Netflix had lost subscribers for the first time in a decade, co-CEO Ted Sarandos hinted that Netflix could also be exploring the idea of showing live sports
He said: "I’m not saying that we’ll never do sports but we’ll have to see a path to growing a big revenue stream and a great profit stream with it."
