Roku vs. YouTube: The Good, the Bad, and the Ugly

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Roku vs. YouTube: The Good, the Bad, and the Ugly
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Roku (NASDAQ:ROKU) and Alphabet's (NASDAQ:GOOG) (NASDAQ:GOOGL) YouTube aren't seeing eye-to-eye these days, and that finds both companies on a collision course next month. If the two parties don't come to terms on a new contract next month, it could be the end of YouTube and YouTube TV on the app marketplace for Roku's popular streaming platform.

With more than 56 million active users on its rolls, Roku is the ultimate living-room tastemaker. Folks with aftermarket Roku dongles or buyers of the 38% of smart TVs shipping with Roku as the default operating system spend an average of more than three hours a day streaming content through the platform.

The two parties have been trading barbs back and forth about the potential split in early December, and each one is laying the blame on the other. The latest update came on Wednesday afternoon when Roku reported its third-quarter results. It wasn't much of an update, but we can parse out enough comments from the transcript to piece together the good, the bad, and the ugly of the battle between Roku and Alphabet's iconic video-sharing service.