Roku Drops YouTube TV Amid Contract Disputes
June 2, 2021
As a Texas consumer, one may not fully recognize or appreciate all the business contracts and transactions that must be completed for them to enjoy the basics in his or her life. Whether it is an automobile, a home, food delivered to their doorstep, internet provider or television streaming service, it is successful business contracts that allow for them to occur or function as they were intended to. Thus, if an issue arises and contract dispute occurs, this could significantly disrupt the business parties and the consumers that rely on the product or service.
Anti-Competitive Demands
Roku is a major streaming platform in homes across the nation, so it is a major news when Roku decides to remove YouTube TV from its channel store. Google, the parent company of YouTube TV, and Roku failed to come to terms with a distribution agreement, as there were allegations that the tech giant made anti-competitive demands.
Roku cited four demands from Google that appeared to be anti-competitive to them. This included Google’s request for Roku to manipulate the consumer’s search results as well as granting them access to data that no other company is privy of. Furthermore, Roku claims that Google made attempts to leverage the power of their channel, which would force Roku to accept hardware requirements that would increase consumer costs.
Failed Contract Negotiations
While these issues were seen fairly often when it comes to Television providers and linear television networks, this is one of the first times consumers will experience a major streaming network being pulled from their streaming platform due to negotiations failing. Despite it being pulled from the channel store, existing customers were not impacted. Thus, they will still be able to have access to the channel on Roku. While consumers continue to be impacted by this contract dispute, the two companies will continue to negotiate. There is hope that the two will continue their efforts to reach a good-faith agreement.
Whether a business is dealing with term issues to reach an agreement, or they are dealing with a contract dispute based on a breach, it is important that those involved understand how best to address the matter.