Roku is exploring ways to show consumers ads on its TVs even when they are not using its streaming platform: The company has been looking into injecting ads into the video feeds of third-party devices connected to its TVs, according to a recent patent filing.
This way, when an owner of a Roku TV takes a short break from playing a game on their Xbox, or streaming something on an Apple TV device connected to the TV set, Roku would use that break to show ads. Roku engineers have even explored ways to figure out what the consumer is doing with their TV-connected device in order to display relevant advertising.
Years ago I was talking to some engineers at one of the main gas pump manufacturers. They were venting about their company’s partnership with Verifone. While they used to handle credit card reading themselves in the magnetic stripe days, the switch to chip credit cards and readers in the U.S. meant they were going to partner with an established card reader company and Verifone (at least at the time) was the largest and most established in the new chip technology. Verifone was dominating the partnership and making life difficult for the gas pump company, insisting on all sorts of changes to the devices that weren’t necessary for the gas pump but were going to let them do things like run ads at the gas pump. If the pump manufacturer didn’t go along with it, Verifone seemed to have a very credible threat that they were just going to leave and go to the other main gas pump manufacturer. The gas pump companies needed the card reader a lot more than the other way around.
So, these ads have been a long time coming, but it wasn’t the pump manufacturer that had the idea or wanted to do it.