The struggling streaming service might be able to reignite growth in an increasingly competitive industry.
Most of Netflix's streaming video rivals offer lower-priced or free tiers of their services to consumers who are willing to watch ads during their programming. Simply put, of the eight major streaming services available in the United States, Netflix ranks last in terms of overall perceived value.
As Netflix (NASDAQ: NFLX) prepares to launch its ad-supported tier, rumors have swirled that an acquisition could be in the company's future to make the transition easier. One company that analysts have repeatedly mentioned as an option is the hardware and streaming service Roku (NASDAQ: ROKU). At the Cannes Lions advertising festival on June 23, Netflix Co-CEO Ted Sarandos confirmed that the company would launch an ad-supported tier soon.