Introduction to Roku
Roku pioneered streaming to the TV. We connect users to the movies, TV shows and music they love – and we provide content providers and advertisers with access to our large, growing and highly engaged TV audience. As of June 30, 2018, we had 22 million active accounts, and we stream billions of hours of content every quarter. We have never been more confident that someday all TV – and all TV advertising – will be streamed.
When the internet disrupts large existing businesses, the opportunity exists to create new large-scale platforms. That’s what Roku is – the leading TV streaming platform in the U.S., based on hours streamed. We reach consumers primarily through streaming players, which we sell through retailers, and via Roku TVs which are made and sold by our TV licensing partners. We monetize our growing platform business with revenues from advanced advertising, content distribution and audience development. The Roku OS is purpose-built for TV. We’ve created a platform that’s easy for consumers to use and has lots of great content while having lower overall costs than rival options for TV licensing partners.
The success of our business is measured by two primary metrics: Active accounts and average revenue per user, or ARPU. As we grow the number of people using our platform and increase the economic value of our relationships with each of those customers, our business flourishes.
One reason we’re confident: the sheer size of the TV advertising business – an estimated $70 billion a year in the U.S. alone. As viewers shift to streaming, advertisers are starting to follow. Nielsen last year reported that 10% of TV viewers in the 18-34 demographic are only reachable on TV via the Roku platform. We are rapidly gaining market share in the TV ad business. It’s a reflection of customers’ enthusiasm for streaming, Roku’s connection to both cord-cutters and cord-shavers (and “cord-nevers”) and our ability to deliver highly targeted advertising.
Our streaming platform delivers better TV for everyone: consumers, content publishers, advertisers, retailers, pay TV operators and TV brands.
Introduction to Roku