Roku

Roku operates a two-sided connected TV ecosystem built around its proprietary TV streaming operating system. On one side, it distributes this OS through its own branded streaming devices and through licensing arrangements with TV manufacturers, expanding its installed base and active accounts. On the other side, it aggregates and distributes video content via an ad-supported streaming service, as well as third-party channels and subscriptions, creating a large pool of consumer viewing and advertising inventory.

Value is created by simplifying streaming for consumers, providing a turnkey smart-TV solution for OEMs, and offering scaled TV-screen inventory and measurement capabilities for advertisers and content partners. As the active user base and viewing hours grow, Roku can increase monetisation per user through advertising, revenue-sharing on subscriptions and transactions, and software licensing, while using low-cost hardware and partnerships to keep distribution costs relatively efficient.

Roku is a United States–based streaming television platform and connected-device company. It develops an operating system for TV streaming, sells consumer streaming devices and licences its software to TV manufacturers, and operates an ad-supported streaming service that aggregates films, series and live channels. The company also offers an advertising and measurement platform to help advertisers shift budgets into connected TV.

Roku generates revenue from two main segments: sales of streaming players and related hardware, and platform revenue from advertising, content distribution, subscription revenue shares and software licensing. Its key customers include consumers who buy devices or watch its free, ad-supported channel; TV manufacturers licensing its TV operating system; and advertisers and agencies using its ad and measurement tools to reach TV-streaming audiences.