Today Roku announced its 3rd quarter 2019 earnings and Roku’s ad/subscription revenue has continued to climb to a new record, outpacing revenues from Roku player sales. In the 3rd quarter of 2019 Roku’s revenue was 260.9 million up 50% year over year.
Roku saw revenue from ads and subscriptions jump 112.2 million up 59% over the same period 2018. This is compared to revenue from streaming player sales that was just 6.2 million.
Roku also reported that they now have 32.3 million active accounts.
When asked about how much money Roku makes off its hardware, Roku’s CEO 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 ads and subscriptions than physical devices sold.
Are you happy paying less for a Roku streaming player if it makes money from the ads you see? Leave us a comment and let us know.
Roku will hold its 3rd quarter 2019 earnings call later today. We will have full coverage of everything Roku announces during the call.
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