Roku has reached an agreement to acquire Frndly TV, a subscription streaming service that provides live television channels. The transaction is valued at $185 million.
The acquisition includes $75 million contingent on Frndly TV reaching certain performance goals over the next two years.
Frndly TV offers customers live TV, on-demand videos, and cloud DVR storage. The service markets itself as a lower-cost alternative in the streaming market. It is priced starting at $7 per month, significantly less than many competitors like YouTube TV.
Following the acquisition, Frndly TV is expected to continue operating as a paid service. It will remain available on other streaming platforms in addition to Roku devices.
The deal is anticipated to close in the second quarter of 2025. Roku aims to utilize its platform reach to help Frndly TV expand its subscriber base.
The streaming landscape features numerous competitors, including services such as YouTube TV, Hulu, Paramount+, Peacock, and Netflix. Free live TV services offered by companies like LG, Samsung, Pluto, and Tubi also add to the competitive environment.
Frndly TV's content library has been noted for appealing to specific niche audiences, offering channels that may not be broadly available on other budget streaming options. Some users have noted a lack of local broadcast channels on the service compared to providers like YouTube TV.
Live television services, including subscription-based ones, typically include advertising breaks during programming.
Roku's purchase represents a move to broaden its offerings in the competitive streaming industry by incorporating a budget-friendly option. The agreement formalizes Roku's entry into directly owning a live TV streaming provider.