Roku is best known as the maker of a hockey-puck–size device that attaches to television sets and lets people stream shows from Netflix, Hulu and other streaming services. But Roku now makes most of its money selling advertising. And to broaden that part of its business, it has been taking baby steps into the world of making its own programming. That’s why I’m predicting that Roku will take a giant leap in that direction next year by buying a film and TV studio.
Among the likely candidates are Lions Gate Entertainment, which has said it is considering spinning off its Starz cable channel business. That would make Lions Gate a more appealing target for acquisition by any companies looking to beef up their film and TV production—including Roku. And at a likely price of about $6 billion, the studio—whose library of hit movies includes “The Hunger Games” and “Twilight”—would be easily affordable.
