(April 16): Roku Inc said more than 100 million households are using its streaming platform, marking another milestone as the company continues to leverage that customer base to fuel its growing advertising business.
The achievement underscores the shifting viewing habits of consumers, many of whom have embraced streaming and do not subscribe to cable TV service. Roku’s streaming devices are used “by more than half of all US broadband households”, the company said in a statement on Thursday, citing continued growth in Mexico, Canada, Brazil, the UK and Latin America.
Aside from its own streaming hardware, Roku’s software also runs on many third-party televisions, and the company has also found success with its free, ad-supported Roku Channel service.
The company vies for market share predominantly with Amazon.com Inc’s Fire TV OS and Alphabet Inc’s Google TV. Earlier this year, Amazon said it had sold more than 300 million Fire TV devices, though it’s unknown how many of those products remain in active use. Both of Roku’s rivals have adopted similar strategies, letting TV hardware partners rely on their respective software as the built-in operating system.
Advertising makes up the vast majority of Roku’s business: Out of a total US$4.74 billion in revenue last year, US$4.15 billion of it came from what the company calls its “platform” segment. Roku last introduced new streaming hardware a year ago when it rolled out two new inexpensive streaming sticks. This week, Amazon announced its latest Fire TV Stick HD, touting the US$35 product as its slimmest streamer to date.
Whereas other streaming platforms have shifted towards putting their movie and TV show selections front and centre, Roku presents users with a grid of entertainment apps. Still, the company has gradually added recommendations and other new sections to deepen engagement.
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