When asked about how much money Roku makes off its hardware Roku’s CEO last year said: “We don’t really make money… we certainly don’t make enough money to support our engineering organization and our operations and the cost of money to run the Roku service,” Roku’s CEO Anthony Wood said last year. “That’s not paid for by the hardware. That’s paid for by our ad and content business.”
Roku seems to have found a sweet spot for their company by selling cheap streaming devices and making money from the ads and subscriptions. At this rate of growth Roku may soon be making twice as much off of ads and subscriptions than physical devices sold.
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