Roku Hits Major Milestones, Surpassing 80 Million Active Accounts and More than 100 Billion Streaming Hours in 2023

Rhea-AI Summary

Roku, Inc. continues to see significant growth in active accounts, with over 80 million users globally. Viewer engagement is at an all-time high, with over 100 billion hours streamed in 2023. The company's focus on user experience and content discovery has led to increased time spent on the platform. Roku aims to be the top choice for TV streaming, connecting viewers to their favorite content.

Market Research Analyst

The growth indicators highlighted by Roku, Inc., specifically reaching over 80 million active accounts and surpassing 100 billion hours streamed in a year, signify a substantial expansion in consumer adoption and engagement. This level of engagement suggests a robust competitive position in the streaming market, where user base and streaming hours are critical metrics for success. The comparison to traditional pay-TV subscriber numbers underscores a significant shift in consumer preferences towards streaming services.

Furthermore, Roku's strategic moves, such as the launch of its own line of TVs and expansion of the Roku TV licensing program, are likely to enhance its market presence and brand integration. The introduction of new features and content discovery tools is designed to improve user experience, which can lead to increased platform loyalty and potentially higher ad revenue. The emphasis on Roku’s own operating system and the Roku Channel as part of its ecosystem could be seen as a move to diversify revenue streams and reduce reliance on any single content provider.

Financial Analyst

Roku's reported metrics, particularly the active account base surpassing those of the six largest traditional pay-TV providers combined, have potential implications for its financial performance. The increased scale and engagement could translate into higher advertising revenues, which are a critical part of Roku's business model. The user experience enhancements and the growth of the Roku OS across multiple devices also suggest potential for increased market share and stronger bargaining power with advertisers and content partners.

Investors may view these developments as positive indicators of future revenue growth. However, it's important to monitor the cost implications of these expansions, such as the investment in new product lines and enhanced platform features and how they might affect profit margins. The company's position as the leading TV streaming platform in key markets is a significant strength, but the competitive landscape, including potential moves by major tech companies into the space, remains a critical factor to watch.

Media Industry Analyst

The shift in viewer habits from traditional pay-TV to streaming platforms is a trend that has been accelerating over the past few years. Roku's claim of being the leading TV streaming platform in the U.S. and Mexico by hours streamed, as well as the top-selling TV operating system in multiple countries, indicates a substantial foothold within the industry. These achievements not only reflect user preference but also Roku's ability to capture and retain audience attention in a highly fragmented market.

The strategic expansion of Roku's TV licensing program and the launch of new TVs are likely to further entrench the Roku OS in the consumer electronics market. These developments could enhance Roku's ability to aggregate content and offer a unified viewing experience, which is increasingly important as consumers face content overload. The focus on content discovery tools and enhancing the user experience is a critical response to the challenge of content discoverability, potentially increasing viewer stickiness and time spent on the platform.

TV streaming pioneer sees continued growth in scale and engagement as a top choice for viewers’ TV experience

SAN JOSE, Calif.--(BUSINESS WIRE)-- Roku, Inc. (NASDAQ: ROKU) has more than 80 million active accounts and counting, a major marker of the company’s growth and scale as consumers continue to move to TV streaming. Viewer engagement on Roku is also at a record high—for the first time, more than 100 billion hours were streamed on the platform in 2023, averaging a record of 4.1 hours per day per account in Q4. Additionally, in the U.S., Roku’s active account base is now bigger than the subscribers of the six largest traditional pay-TV providers* combined.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240215076800/en/

Roku, Inc. has more than 80 million active accounts and counting, a major marker of the company’s growth and scale as consumers continue to move to TV streaming. (Graphic: Business Wire)

“As the leading TV streaming platform, Roku aims to make television better for everyone,” said Anthony Wood, Founder and CEO, Roku. “In a world where one day all TV will be streamed, we’re immensely proud to be the programmer of the home screen for more than 80 million active accounts around the globe, connecting people directly to what they love to watch.”

In 2023, Roku launched its own line of TVs and expanded the Roku TV licensing program to include more than 30 partners, furthering the reach of the Roku Operating System (OS). In select markets, user experience updates, new features, and content discovery tools like the Sports Experience, What to Watch, All Things Food, and All Things Home were added to the platform. These enhancements, plus a more informative and engaging Roku search, have led to increased time spent on the platform and an easier, more enjoyable experience for the Roku user.

Since the launch of its first streaming player in 2008, Roku has put the needs and experience of the consumer at the center of its offerings, such as The Roku Channel and Roku’s purpose-built OS. Through its streaming players, Roku TV program, Roku-branded TVs, and continuous innovation on its platform, the company will continue to grow its scale and deliver a best-in-class TV streaming experience for viewers. This continued growth helps the company on its mission to be the global TV streaming platform that connects and benefits the entire TV ecosystem, connecting content partners to an engaged audience and providing advertisers with unique capabilities to reach viewers.

Roku is the leading TV streaming platform in the U.S. and Mexico by hours streamed (Hypothesis Group, Dec 2023) and is the #1 selling TV operating system in the U.S., Canada, and Mexico in Q4 (Source: Circana, Retail Tracking Service, Unit Sales, Oct-Dec 2023 combined).

*Leichtman Research Group, Nov 2023

About Roku, Inc.

Roku pioneered streaming on TV. We connect users to the content they love, enable content publishers to build and monetize large audiences, and provide advertisers with unique capabilities to engage consumers. Roku TV™ models, Roku streaming players, and TV- related audio devices are available in various countries around the world through direct retail sales and/or licensing arrangements with TV OEM brands. Roku-branded TVs and Roku Smart Home products are sold exclusively in the United States. Roku also operates The Roku Channel, the home of free and premium entertainment with exclusive access to Roku Originals. The Roku Channel is available in the United States, Canada, Mexico, and the United Kingdom. Roku is headquartered in San Jose, Calif., U.S.A.

This press release contains “forward-looking” statements that are based on our beliefs and assumptions and on information currently available to us on the date of this press release. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance, or achievements to be materially different from those expressed or implied by the forward-looking statements. These statements include but are not limited to those related to our our future growth, strategies, and innovation; and the shift to TV streaming. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. Important factors that could cause our actual results to differ materially are detailed from time to time in the reports Roku, Inc. files with the Securities and Exchange Commission, including our Form 10-K for the year ended December 31, 2022 and our Quarterly Report on Form 10-Q for the quarter ended September 30, 2023. Copies of reports filed with the SEC are posted on Roku’s website and are available from Roku without charge.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240215076800/en/

Stephanie Tackach

stackach@roku.com

Source: Roku, Inc.

How many active accounts does Roku have?

Roku has over 80 million active accounts globally.

How many hours were streamed on the Roku platform in 2023?

Over 100 billion hours were streamed on the Roku platform in 2023.

What new features were added to the Roku platform in 2023?

In 2023, Roku added user experience updates, new features, and content discovery tools like the Sports Experience, What to Watch, All Things Food, and All Things Home.

What is Roku's mission as a TV streaming platform?

Roku aims to be the global TV streaming platform that connects content partners to an engaged audience and provides advertisers with unique capabilities to reach viewers.

Where is Roku the leading TV streaming platform?

Roku is the leading TV streaming platform in the U.S. and Mexico by hours streamed.