Content orphaned by the demise of short-lived streaming app Quibi has found a new home as Roku (NASDAQ: ROKU) prepares to roll out its own original programming.
The downfall of the phone-based short-form content app was well documented, from the beginning of the Quibi's decline with the decimation of its subscriber base to the final curtain call. Yet, there appeared to be a light at the end of the tunnel after the remnants of Quibi were acquired by streaming titan Roku. Months after Roku's announcement, the company has finally revealed what it intends to do with Quibi; venturing into original programming.
"From award-winning scripted entertainment and engaging documentaries, to new breakout unscripted series, Roku Originals will give viewers free access to bold, fresh entertainment from the biggest names in Hollywood. Viewers can enjoy relevant, diverse entertainment that is accessible to everyone, everywhere The Roku Channel is available," Roku said in press release.
Going into original programming makes perfect sense, given that many of Roku's contemporaries are already well ahead of them. Netflix (NASDAQ: NFLX) and Disney (NYSE: DIS) in particular have rapidly grown their original programming base, creating smash hits that spawn dedicated fandoms, internet memes, and of course, profit. While Roku hasn't offered details timing and what content the company plans on producing, it can be inferred that the company will likely try to convert Quibi's content for viewing on televisions (a process that some believe the company may experience difficulty with, especially considering accelerometer-dependent projects, such as Quibi's film Nest).
However, the business model is to simply use Roku's existing free ad-supported "Roku Channel," rebranding it as Roku Originals. Roku's distribution plans mirror those taken by other companies such as Comcast (NASDAQ: CMCSA), which offers free ad-supported Peacock programming courtesy of brands such as Xfinity.
The news, while exciting for Roku, appears to have been offset by market pressure. Roku had an average day at the market on Wednesday, gaining just under half a percent for the day. Thursday saw market pressure start to work against the company, with Roku trending down again as 1 p.m. passed after spending much of the morning in decline.