您现在的位置是:Encyclopedia >>正文
【38 special 158 grain semi wadcutter for self defense】Roku Is Getting Into Premium Subscriptions
Encyclopedia82953人已围观
简介Subscriptions are a modest part ofRoku's(NASDAQ: ROKU)platform business, with the companykeeping a 2 ...
Subscriptions are a modest part of
Roku
's
(NASDAQ: ROKU)
platform business,38 special 158 grain semi wadcutter for self defense with the company
keeping a 20% cut
of subscription and a-la-carte transactions. The bulk of platform revenue has
always been advertising
. The Roku Channel, which launched in late 2017, is an incredibly important first-party ad-supported channel.
But Roku is now getting into the premium subscription business.
TV showing premium channels on The Roku Channel
Image source: Roku.
Moving upmarket
The company announced today that it is adding premium subscriptions to The Roku Channel, adding another tier of high-quality content to complement its large catalog of free ad-supported content, which is typically older movies and TV shows. Roku will be adding over 25 premium subscriptions to The Roku Channel, including
CBS
' Showtime,
Lionsgate
's Starz, and MGM Studios' Epix, among others. The announcement notably does not mention
AT&T
's HBO.
The Roku Channel viewers will be able to start free trials of any premium channel, and all billing and subscriptions will be managed through their Roku accounts. Roku had nearly 24 million active accounts at the end of the third quarter, making it an attractive distribution channel for content owners. In comparison,
Comcast
, which is the largest cable provider in the U.S., had approximately 22 million total video customers at the end of the third quarter.
More importantly, ongoing cord-cutting is helping Roku to grow its active account base while Comcast's video customer base continues to shrink. Premium subscriptions will start rolling out this month and continue through early 2019. The company is also adding The Roku Channel to its mobile app as part of its broader push to
expand beyond its own hardware players
.
Social networking giant
was reportedly considering adding premium channels to its Watch video platform before
deciding not to move forward
with the strategy, instead choosing to focus its video ambitions on free ad-supported content.
Competing with Amazon
In expanding into premium subscriptions, Roku is looking to challenge
Amazon.com
(NASDAQ: AMZN)
, which also offers third-party premium channels as part of its Prime Video platform. One key difference is that customers that subscribe through Amazon can access third-party apps and services directly, while customers that subscribe through Roku will have to access the channels through Roku's app, which is slightly less convenient.
While Amazon has payment credentials for Prime members, Roku doesn't for many of its active accounts that only view free content. That's another added inconvenience for some Roku users that might be interested in signing up.
Story continues
Chart showing Roku's ARPU over time
Data source: SEC filings. Chart by author.
Despite a few challenges, the move makes perfect sense for Roku by moving upmarket into the lucrative business of selling third-party premium content, earning a cut of subscription revenue in the process. Average revenue per user (ARPU), which Roku presents on a trailing-12-month basis and is calculated as platform revenue divided by active accounts, has already been soaring as the company has been ramping ad sales.
Adding in premium channels has the potential to help maintain that ARPU momentum.
More From The Motley Fool
10 Best Stocks to Buy Today
3 Stocks That Are Absurdly Cheap Right Now
5 Warren Buffett Principles to Remember in a Volatile Stock Market
The $16,728 Social Security Bonus You Cannot Afford to Miss
The Must-Read Trump Quote on Social Security
10 Reasons Why I'm Selling All of My Apple Stock
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.
Evan Niu, CFA
owns shares of Amazon and FB. The Motley Fool owns shares of and recommends Amazon, FB, LGF-A, and LGF-B. The Motley Fool recommends CMCSA. The Motley Fool has a
disclosure policy
.
View comments
Tags:
相关文章
Paycheck Protection Program (PPP) Loans
EncyclopediaBusiness owner working at his restaurantWith stay-at-home orders in place across the U.S., revenues ...
阅读更多'Undefeated and Unindicted' Trey Gowdy Shares Plans for Nelson Mullins Role
EncyclopediaRepresentative Trey Gowdy (R-SC) questions Hillary Clinton during a House hearing of the Select Comm ...
阅读更多Are Insiders Buying e-therapeutics plc (LON:ETX) Stock?
EncyclopediaWe often see insiders buying up shares in companies that perform well over the long term. On the oth ...
阅读更多
热门文章
- CanWel Building Materials Group (TSE:CWX) Shareholders Have Felt Some Pain With A 19% Loss On Their Investment
- Have Insiders Been Selling Delta Air Lines, Inc. (NYSE:DAL) Shares?
- BRIEF-Bumi Armada Posts Q4 Net Loss 1.26 Bln RGT
- Before You Buy Ardagh Group S.A. (NYSE:ARD), Consider Its Volatility
- SINGLE STOCK SYMBOL ALERT: The Schall Law Firm Announces it is Investigating Claims Against Tupperware Brands Corporation and Encourages Investors with Losses In Excess of $100,000 to Contact the Firm
- ‘Mr. Harrigan’s Phone’: Donald Sutherland & Jaeden Martell To Star In Netflix Blumhouse Movie – BlumFest
最新文章
友情链接
- WRAPUP 1-Standard U.S. economic weapons may be inadequate for coronavirus crisis
- Space Launch Services Market to Reach USD 26.16 Billion by 2027; Increasing Space Research Activities will Emerge in Favor of Market Growth, says Fortune Business Insights™
- Argentina teeters on the brink of ninth default
- A Magnificent Ascent For The Newest Cloud ETF
- Smithfield Foods Says That the Company and Its Team Members Want the Same Thing: To Protect Employee Health and Safety While Also Safeguarding America’s Food Supply
- Is AquaBounty Technologies (NASDAQ:AQB) Using Too Much Debt?
- Why Consumer Financial Protection Bureau's structure is a real threat to small business, individual liberty
- GE Aviation Furloughs Half Its Engine Manufacturing Workforce Amid Coronavirus Pandemic
- Global watchdog warns over financial staff curbs in pandemic
- Ireland to replace British travel ban with stricter testing - minister