Roku Channel Store

With cable subscriptions declining and a host of nonlinear, IP-connected devices emerging to offer new, incremental revenue possibilities, the time has come for local TV to get serious about an OTT strategy. To capitalize on this opportunity at a market level, local operators should be asking, “what does an effective OTT strategy entail?” and “what steps can be taken today?”

Roku, an OTT set-top box provider with an open application environment and channel store for content developers to build on, is probing these same questions and thinks it may have the answer. Partnerships, curated content, revised workflow and advertising are all part of the solution.

Roku’s channel store already features a growing swath of audio and video content, including Netflix, Hulu Plus, MLB.TV, the NHL, Pandora and Roku Newscaster, which culls together a cross-section of news from national outlets. While sports and entertainment/drama are particularly appealing, Jim Funk, Roku’s VP of business development, told BIA/Kelsey that customers of the channel store have demonstrated “lots of interest in local stations.”

CEO Anthony Wood cautions that these users “don’t watch linear programming,” creating a new challenge for stations to leverage their existing brand strengths while packaging their content to appeal to a new breed of consumer.

Because of Roku’s open network, developers can create content channels that are compatible across other similar platforms (OTT boxes, gaming consoles, Blu-ray players). But participating local stations must curate their content to meet the needs of a digital video audience, which has shown the tendency to snack on smaller samples (e.g., YouTube vignettes) instead of longer-form programming (partially explaining the demise of FLO TV). There is an e-commerce billing service, with a revenue split, if a developer chooses to charge for content.

Once content decisions are made and internal workflow is adjusted to serve the OTT channel, broadcasters must partner with an online video platform (Brightcove, thePlatform and New Lion, to name a few) to upload, encode and deliver their video assets to the to the Roku store. These companies also target mobile and PC screens, so OTT can be part of a multi-screen relationship.

Roku currently draws most of its revenue from box sales, and channel development is free. Wood envisions building ad network and e-commerce capabilities in the near future. As part of the ad network, participating local stations would cede some of their inventory to Roku to monetize. Local advertising options could emerge, too.

MHz Networks provide an early model for locals to follow. In February, the Washington, D.C.-based non-commercial broadcaster introduced its premium international programming in the on-demand Roku channel store at $9.95 per month.

Rights issues must still be solved to make the migration to Roku and other OTT platforms more seamless. If broadcast rights and OTT rights are separate entities, then networks and syndicators may be reticent to approve their content for delivery in local OTT offerings.Pink cooler bag weekenders fashions 515. Manolo Blahnik Leopard D show me the money game show;
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Tags: local tv, MHz Networks, OTT, Roku

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