Roku is Growing Faster Than Netflix Did at the Same Point




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Analysts from William Blair say that Roku is growing at a faster rate than Netflix did when the streaming service was at the same business stage, according to a report from CNBC.

We recently reported on Roku’s 2nd quarter revenue. There, we talked about Roku’s earnings being up 59% from the previous year. At that time, Roku also announced that they have 30 million active accounts. The William Blair firm says they expect Roku to have 80 million active accounts by 2025.

These numbers put Roku on track to be ahead of where Netflix was at while at the same stage.

“Looking at Roku’s most recent nine quarters against those of Netflix in the beginning stages of Phase II, Roku, on average, achieved 9% quarter-over-quarter growth, compared with Netflix’s average of 8%,” Ralph Schackart said in a note to clients.

This also brought on comparisons between the companies in terms of international expansion. Netflix began offering streaming services to the international market in 2010 when it expanded to Canada. The following year, Netflix expanded to Latin America, Central America, and the Caribbean, followed by the UK and further European expansion. Netflix is now available in 190 countries.

Roku’s CEO confirmed that he is spending more time on International but said “We are not ready to reveal our plans for international yet.” Roku CEO Anthony Wood said during the 2nd quarter of 2019 earnings call.

“In our view, Roku will experience similar phased stages of international growth as Netflix did during its international expansion,” Schackart noted.

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