Roku reaches multiyear agreement with Google to keep YouTube on streaming platform

The picture was taken in Hastings-on- Hudson, New York, May 2, 2021.

A multiyear agreement has been reached between the two companies.

The shares of the company rose as much as 11%.

The deal will allow the 56.4 million active Roku accounts to continue to watch live streaming services.

On December 9th, Google threatened to remove both YouTube and YouTube TV from the Roku platform. Congress has been trying to rein in the power of big technology companies, such as Google, after the carriage fight caught their attention.

A deal has been reached that will allow customers to continue to have access to both the YouTube and the YouTube TV apps. We are happy to have a partnership that benefits our users.

The agreement avoids a YouTube blackout, which could have led to defections. Apple TV and Amazon Fire TV carry the video sharing site.

The two companies have agreed to a multi-year extension for both YouTube and TV. The agreement will make both YouTube and YouTube TV available for all streamers on the Roku platform.

The terms of the agreement were not disclosed.

Both parties needed advertising revenue in the negotiation. Each carriage deal it negotiates, Roku asks for a percentage of advertisements to sell to its customers. The second most visited website in the world, YouTube, dominates streaming viewing and has the popularity to push back on the demands of the company. The company claimed that it was required by the internet giant to preference its own content over that of other providers in its search results.

The big tech platforms have used their power to preference their products and services over those of thousands of smaller online businesses, according to Sen. Amy Klobuchar. They have said to trust us, but experience has shown that we can't rely on these companies to act fairly in the marketplace.

Roku has developed a reputation as a difficult negotiator. After each application launched publicly, it reached agreements with NBCUniversal and WarnerMedia.

Jim Cramer is on a streaming device.