Roku Welcomes Netflix To Ad-Streaming Market, Says Originals Chief David Eilenberg: ‘We’re Fundamentally Different Products’

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Roku has welcomed Netflix into the ad streaming market.

As SVoD service Netflix this week launches a low-cost, ad-supported tier in 12 territories, Roku Head of Originals David Eilenberg said his platform doesn’t see a direct threat and instead is focused on the benefits of long-term market changes.

“We believe the that the catalytic effect of [Netflix’s entrance] will have on the holistic shift from linear to streaming on ad spend outweighs short-term competition,” he said.

He also argued that the Roku box is a “fundamentally different” product to Netflix and other low-cost streamers “as ours is truly free and they ultimately require a monthly subscription, even at a reduced fee. They resonate differently with consumers.”

Netflix is also available through Roku in the U.S. “All of these companies who are competitors in one respect are partners in another,” said Eilenberg.

Roku certainly faces challenges, as despite total revenues and user base numbers tracking well ahead of analysts’ fourth quarter predictions this week, its stock fell as shareholders quibble over the downturn in the digital ad market. However, Roku is focusing on international expansion, due to its belief AVoD and FAST channels will dominate the future of entertainment and has outlined bullish plans for original shows. It is currently available in the U.S., UK, Canada and Mexico, where its first Spanish-language service recently went live.

“There’s been extraordinary growth in FAST channel viewing,” said Eilenberg. “It’s both true for us and across the AVOD sector — some of it is for news and weather but some is curated show channels. If you know you have enough hours to populate a FAST channel and the viewership who wants it, you’re always interested in doing it.”

Roku now offers most, if not all, of The Great British Bake Off in the U.S. on one curated channel after executives noticed the stateside engagement the Love Productions title, known domestically as The Great British Baking Show. That’s been followed up with the commission of a six-part order for The Great American Baking Show, which is shooting in the UK’s famous tent with original series judges Paul Hollywood and Pru Leith. Ellie Kempter and Zach Cherry present, with Love Productions USA overseeing the bake. It launches next year.

Colorful screenings

Eilenberg, a former Turner and ITV America content chief, was speaking exclusively to Deadline as The Roku Channel ’s loudest original content play to date, the Daniel Radcliffe-starring Weird: The Al Yankovic Story, launched this week. Packed full of unexpected cameos from the comedy world (no spoilers here), the film is attracting attention and so Roku held funky, colorful screenings and parties for the show in New York and London. You can read Valerie Complex’s review from TIFF here.

“If there’s a key statement here,” Eilenberg said of Weird, “it’s that we’re setting out to surprise and delight viewers. People seem to be responding with such enthusiasm and we’re looking forward it joining our service this week.”

Eilenberg was speaking to Deadline’s London desk from the U.S., having joined Roku earlier this year from ITV’s American arm, where he was Chief Content Officer, to spearhead a concerted push into original films and TV. At the time of his hire’s announcement, Roku was planning to order around 50 originals over the following two years. With the economy worsening and the share price down, market watchers will be interested to see how far he can go into that pledge.

Roku has certainly been making noise on the international front, with Netherlands-based VP of International Platform Mirjam Laux, a former Prime Video country manager, overseeing the rollout. However, it was the marquee capture of Fox Entertainment CEO Charlie Collier to become leader of Roku Media that was the real statement of intent to the entertainment business, along with the chatter the developed after Eilenberg, another executive with a traditional TV background, had moved over.

“It’s an exciting time to be part of the organization,” said Eilenberg. “Roku itself has been around for the past two decades but Roku originals are only a year old so the fact we’re up and active in four big territories means it’s an exciting time for the channel and my time spearheading originals.”

Eilenberg and his Roku Originals team have made several interesting plays recently. Last month, Deadline revealed the channel had rescued TBS cable series Chad, the coming-of-age comedy about a Persian-American boy, handing it a second season after Warner Bros Discovery had chosen to scrap it along with several others as part of the ongoing cost-cutting drive. Roku did the same with Zoey’s Extraordinary Playlist after NBC cancelled it.

Eilenberg pointed to the upcoming scripted comedy SLIP, written, starring and directed by Zoe Lister-Jones and from Canada’s Boat Rocker and Dakota Johnson and Ro Donnelly’s TeaTime Pictures, as one to watch. It follows Mae (Lister-Jones) through a fantastical journey of parallel universes, as she enters new relationships, trying to find her way back to her partner and herself. 

He also has high hopes for To Paris For Love: A Reality ‘Rom Com’ from Reese Witherspoon’s Hello Sunshine and Zoe Saldana’s Cinestar that Eilenberg describes as “at its heart it’s an unscripted dating and romance show but cut in the form of a single feature rom com — a totally different way to attack that genre.”

There will also be a second season of Josh O’Keefe’s animated comedy Doomlands, which was one of the shows Roku acquired the program assets of failed streamer Quibi.

This is all part of Roku’s mission to establish itself as a media company and away from the previous profile as TV tech platform. “‘Media’ is in Charlie [Collier]’s actual job title, so that indicates seriousness of intent,” said Eilenberg. “For me, it’s been intellectually enlivening to be in a more data-driven environment. Conversing with people who have grown up in industry distinct to your own forces you to look with new eyes and I have found that really enjoyable.”

He noted that phrases like “speed to market” is Silicon Valley language that has been adapted for TV. “To be at a company with that built into the DNA has been invigorating,” he said.

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