Roku surfs the quarantine streaming waves with 3 tailwinds at its back
Snacks / Wednesday, April 15, 2020
Like that excited friend who can't keep a secret... streaming player Roku is so giddy with its recent success that it couldn't help but share a little sneak-preview into its earnings ahead of their May 7 release.
- 3M: The number of new accounts Roku estimates it added in the last 3 months. Its total active accounts are estimated to be around 40M.
- 49%: How much Roku expects streaming hours have risen over the same period compared to last year — that's 13.2B hours of streaming through Roku (or how you feel after finishing all of Netflix).
- 10%: How much Roku's stock popped after the preview victory.
Roku is kind of like the People's Streaming Device... It accounts for 44% of all streaming hours in the US. Its dongles start at $29.99/month, compared to Apple TV's $140+ shiny black boxes. It's not as sleek as Apple TV or as Alexa-integrated as Amazon Fire Stick — but it's cheap, it works, and is compatible with most TVs. Most Americans can swing that.
Tailwinds are great for business... When economic trends align with your biz model, it's like a strong wind pushing you further in your desired direction. Roku's got 3 at its back:
- Lockdown Life: Quarantine boredom + the launch of exciting streamers like Disney+ and HBO Max are likely to get people hooked on streaming devices.
- Live sports is cancelled: Just another reason to cut the cord.
- Saving Mindset: With the economic crisis, people may opt for Roku's low-cost streaming device over pricier ones. But this is also a headwind — 63% of Roku's revenue comes from ads, which marketers aren't splurging on since your spending is way down.
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