Image: Roku / Protocol
YouTube’s fight with Roku is about much more than TV

Good morning! This Monday: what's really going on in the fight between YouTube and Roku, why Apple's deals with Amazon and Netflix matter in its case against Epic, Elon Musk's favorite SNL sketch, and a ransomware attack of unprecedented scale.
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One very good (and very popular) reason to try and build a vertically integrated tech giant is to not have to deal with other companies' rules. And given what's happening between YouTube and Roku right now, is it any wonder that Google is betting big on Chromecast and Android TV while Roku is going all-in on original content?
The quick backstory: YouTube and Roku have been fighting for a few weeks, seemingly because YouTube wants Roku to support new video codecs that won't work on the low-end hardware Roku's software typically handles so well. (Both sides have also made other, wilder accusations, but this seems to be the one agreed-on fact.)
This whole thing is remarkable both for how public and how bitter it is. Especially given that YouTube (the largest video service) and Roku (the largest streaming OS) need each other pretty badly. Although, that might actually be the real problem.
This is a fight for control. Who gets to decide what codecs get used to play video? Who gets to decide how things are ranked in search engines, or whether a search for "play the 'Quiet Place 2' trailer" opens YouTube, Fandango or something else? Each of these questions has huge technological and business ramifications.
Google and Roku have both also spent the last few years fighting for more full-stack control in everything they do:
Tech giants don't like being told what to do. And they hate being put between a rock and a hard place, like having to decide whether to give in or lose access to the most important TV platform or streaming service in the world. But this is what happens in tech, whether you run the Roku Channel Store, the Amazon Marketplace, the App Store or the biggest name in online video. Platforms get huge, and they get weaponized. And there are rarely easy solutions.
It's Epic v. Apple week two! We spent the first week getting way in the weeds about what a game is, and talking about our favorite sci-fi books. Expect things to remain just as wonky as the two sides explore the business models of the internet.
One big thing to watch out for this week: discussion of special deals that Apple cuts with its partners. Apple always says it treats every developer the same, and the App Store is a level playing field, but evidence shows that's not really the case.
Apple needs to be seen as a good steward, not using its immense power to pick and choose winners, if its defense is to work. That is something Epic will try desperately to unravel, pointing to every back-alley deal and one-off email as evidence that there's no such thing as fairness in the App Store.
We'll be covering the trial here and on Protocol all week — here's where you can find all our coverage.
Enough with the "who wants to go back to the office" surveys, Hunter Walk said:
Amy Klobuchar said she's not anti-tech, just in favor of more competition:
Elon Musk picked his favorite SNL sketch:
The nation's smallest businesses have a large impact on our economy and communities - yet are often overlooked by policy makers. See why GoDaddy created Venture Forward, a multi-year research effort to quantify the economic impact of 20 million businesses in the U.S. with 10 or fewer employees. Explore the Data.
IBM Think starts tomorrow, with two days full of all things cloud and automation.
The WSJ's Future of Everything Festival also starts tomorrow, with people like Marc Benioff, Whitney Wolfe Herd and David Baszucki all on the schedule.
There are more earnings reports this week, including from DoorDash, Airbnb, Palantir, Alibaba and Foxconn.
The future of work, at least for some companies, is remote. So here's the win-win to end all win-wins: work remotely, in the Italian countryside, and get paid extra to do it. Two Italian towns, Santa Fiora in Tuscany and Rieti in Lazio, are offering to cover up to 50% of your rent if you move and telecommute long-term. All you have to do is prove you have a job.
A lot of cities see remote work as their chance to revitalize, and lure back some of the people forced to flee to bigger, smellier, more expensive cities for work reasons. I've been thinking about this all weekend, and I haven't found a downside yet. Should we be neighbors?
The nation's smallest businesses have a large impact on our economy and communities - yet are often overlooked by policy makers. See why GoDaddy created Venture Forward, a multi-year research effort to quantify the economic impact of 20 million businesses in the U.S. with 10 or fewer employees. Explore the Data.
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Today's Source Code was written by David Pierce, with help from Anna Kramer and Shakeel Hashim. Thoughts, questions, tips? Send them to david@protocol.com, or our tips line, tips@protocol.com. Enjoy your day; see you tomorrow.
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