Is TV Manufacturing Roku’s Next Channel?

Big news: Rumors are circulating that Roku is preparing to launch their own smart TV.

Big question: Why would Roku want to build their own TVs?

Quick answer: Smart TV manufacturers have improved their operating systems (TVOS) to the point where an increasing number of consumers opt to forgo a third-party streaming device (Roku, Fire TV, etc.).

YoY growth in viewing time by streaming device type according to Conviva:
1) Smart TV – ↑ 37%
2) Mobile – ↑ 17%
3) Tablet – ↑ 5%
4) CTV device – ↓ 2%
5) Desktop – ↓ 12%
6) Gaming console – ↓ 16%

Key numbers from Roku’s earnings:
1) 8.9M active accounts added in 2021
2) 60.1M total active accounts
3) 80% YoY increase in advertising revenue
4) 45% YoY increase in ad revenue per hour of streaming

Roku active accounts (YoY growth):
1) 2016 – 13.4M
2) 2017 – 19.3M (↑ 44%)
3) 2018 – 27.1M (↑ 40%)
4) 2019 – 36.9M (↑ 36%)
5) 2020 – 51.2M (↑ 39%)
6) 2021 – 60.1M (↑ 17%)

Roku advertising revenue (YoY growth):
1) 2016 – $105M
2) 2017 – $225M (↑ 115%)
3) 2018 – $417M (↑ 85%)
4) 2019 – $741M (↑ 78%)
5) 2020 – $1.3B (↑ 71%)
6) 2021 – $2.3B (↑ 80%)

Roku advertising revenue per account (YoY growth):
1) 2016 – $7.83
2) 2017 – $13.78 (↑ 76%)
3) 2018 – $17.95 (↑ 30%)
4) 2019 – $23.14 (↑ 29%)
5) 2020 – $28.76 (↑ 24%)
6) 2021 – $41.03 (↑ 43%)

Roku total streaming hours (YoY growth):
1) 2016 – 5.2B
2) 2017 – 14.8B (↑ 185%)
3) 2018 – 23.7B (↑ 60%)
4) 2019 – 37.7B (↑ 59%)
5) 2020 – 58.7B (↑ 56%)
6) 2021 – 73.2B (↑ 25%)

Roku advertising revenue per streaming hour (YoY growth):
1) 2016 – $0.020
2) 2017 – $0.015 (↓ 25%)
3) 2018 – $0.018 (↑ 16%)
4) 2019 – $0.020 (↑ 12%)
5) 2020 – $0.022 (↑ 10%)
6) 2021 – $0.031 (↑ 45%)

More: Roku Platform Head Scott Rosenberg Is Leaving the Company

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