Roku announced it will acquire Frndly TV, a low-cost live TV streaming service with over 50 family-oriented channels including Hallmark, Lifetime, and A&E, in an all-cash transaction valued at $185 million. The move comes as Roku continues its strategy to grow platform revenue, expand Roku-billed subscriptions, and diversify its content offerings amid a competitive and shifting streaming landscape.

Founded in 2019 and based in Denver, Frndly TV is known for its feel-good, family-friendly programming and budget pricing, with plans starting at $6.99/month. The service includes unlimited cloud DVR and is currently available on Roku, Amazon Fire TV, Apple TV, Samsung, Vizio, mobile, and web. Roku confirmed Frndly TV will continue to operate across all platforms post-acquisition.

“Frndly TV’s impressive growth and expertise in direct-to-consumer subscription services make it a compelling addition to Roku,” said Roku CEO Anthony Wood. “This acquisition supports our focus on growing platform revenue and Roku-billed subscriptions, with a live content offering our users love at an industry-leading price point.”

Frndly TV’s CEO and co-founder Andy Karofsky added, “We believe this combination will help us accelerate subscription growth, given the alignment in core customer demographics and Roku’s leadership position in the connected TV ecosystem.”

$75 million of the $185 million price tag is contingent on Frndly TV meeting performance milestones over the next two years. The deal is expected to close in Q2 2025, pending customary conditions.

Q1 Earnings Context: Platform Revenue and Viewing Time Climb

The acquisition news came the same day Roku released its Q1 2025 financial results, reporting:

• $1.02 billion in total net revenue, up 16% YoY
• 35.8 billion streaming hours, a 5.1 billion hour YoY increase
• $880.8 million in platform revenue, up 17% YoY
• Adjusted EBITDA guidance for the year: $350 million
• Reaffirmed full-year guidance: $4.55 billion in revenue

Despite narrowing losses and strong engagement metrics, Roku stock fell 5% in after-hours trading as the company acknowledged ongoing macroeconomic uncertainty and softening device margins.

Notably, Roku no longer shares user growth figures but noted it is approaching 100 million streaming households, up from 90 million currently.

INSIDER TAKE

This acquisition signals Roku’s continued evolution into a platform-first subscription ecosystem, placing greater emphasis on direct-to-consumer growth and bundled value. Frndly TV gives Roku a differentiated offering: affordable, live linear programming with broad appeal among value-conscious families — an underserved but loyal segment in the OTT landscape.

While Frndly TV lacks the splashy originals or sports packages of competitors, its strength lies in consistent, brand-safe content and a sticky subscriber base. That makes it an attractive retention play for Roku’s ad-supported and subscription tiers alike.

Strategically, this move parallels the industry trend of bundling and aggregation — bringing niche or mid-tier services under bigger distribution umbrellas to compete against subscription fatigue and churn. Roku is betting that its home screen reach, programmatic ad capabilities, and billing infrastructure can supercharge Frndly’s already impressive unit economics.

With streaming hours climbing and advertisers seeking more flexible, high-ROI placements, Roku is positioning itself as both a gateway and gatekeeper in the connected TV era — and Frndly TV fits snugly into that vision.