Roku’s Core Focus on Chageover

Roku’s Core Focus on Chageover


Roku is in a strategy to shape up its current ad friendly platform of streaming videos to capture new customers as well as retain its rising plugging out customers. For enhancing revenue generation, Roku has been in talks with several companies including media, advertising and technology; to choose Roku for their content. For the last quarter Roku generated total revenue of $173.4 million beating expectation of $169.1 million. Share of revenue generated from platform was $100.1 million towards total revenue, lagging the expectation of $103.2 million. Also the average revenue per user (ARPU) remained limited to $17.34 compared to $17.44 forecasted by analysts.

Similar to Apple’s TV app, Roku has shared its intensions to develop a house channel by extending The Roku Channel. Still on the platform, other apps will be allowed but with element of lesser prominence unlike today. Other proposal is to make the Roku’s home screen free for its partner content enabling easy access for the users without switching between apps. Based upon user’s pre-set catagories and data, Roku on its home screen will recommend the shows or movies to its users.  Roku did not give any timelines for implementation of this changeover but calling it “core focus” for its future strategy.

As of June 2018, Roku, for its 22 million active users is the main source of streaming videos and TV shows. Roku has also succeeded to expand its very own The Roku Channel app by making it compatible with other than Roku devices including smart phones and desktop computer through internet.

Competitors like Amazon Fire TV, Apple TV and Google Chromecast has been pushing Roku in hard competition to catch advertisers. Amazon made talks with media buyers to expand its start-up business of ad-supported video streaming. Despite being unsupported for advertisement, for its upcoming service, Apple has adopted aggressive approach of purchasing its own shows.

With all these, user will also be benefitted with no need to switch between the apps to find and watch their favorite movie or show.

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I cover technology, utilities and biotechnology for Markets Morning, and I help out occasionally with other industry sectors. I've written about investment and personal finance topics for more than 20 years from a lowly copywriter to editor-in-chief, so I've done a little bit of everything. For what it's worth, I have a BA from Duke University and an MBA from Rollins College. I'm married with one daughter, and that's worth more than everything else put together.