您现在的位置是:Entertainment >>正文
【which rotel is hotter mild or original】Roku Is Getting Into Premium Subscriptions
Entertainment394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,which rotel is hotter mild or original 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
StockBeat: No Hiding Place (Except Tesco)
EntertainmentBy Geoffrey SmithInvesting.com -- There was nowhere to hide on Monday in Europe’s stock markets, wit ...
阅读更多Does Biosearch, S.A. (BME:BIO) Create Value For Shareholders?
EntertainmentOne of the best investments we can make is in our own knowledge and skill set. With that in mind, th ...
阅读更多Disney's Live-Action 'Mulan' Pushed Back to 2020
EntertainmentDisney has pushed back the release date of its live-action Mulan reboot by more than a year.The film ...
阅读更多
热门文章
- Coronavirus strands merchant ship crews at sea for months
- Southside Bancshares (SBSI) Lags Q4 Earnings and Revenue Estimates
- American Assets Trust Inc (AAT) Chairman, CEO & President Ernest S Rady Bought $430,471 of ...
- Regional observers endorse Congo's election - with caveats
- Amazon's (AMZN) Latest ML Services Boost Its AWS Portfolio
- Is Verizon Communications Inc. (VZ) A Good Stock To Buy ?
最新文章
-
The Global Physiotherapy Equipment Market is expected to grow from USD 14,684.89 Million in 2018 to USD 23,874.40 Million by the end of 2025 at a Compound Annual Growth Rate (CAGR) of 7.18%
-
BRIEF-Master-Pack says group executive chairman has been released from the remand
-
DG vs. ROST: Which Stock Should Value Investors Buy Now?
-
Value Investors Avoid JPM, Buy These 5 Bank Stocks Instead
-
One Thing To Remember About The Chimerix, Inc. (NASDAQ:CMRX) Share Price
-
Tough Backdrop to Hurt Affiliated Managers (AMG) Q4 Earnings
友情链接
- ‘Hell’s Kitchen 22’ episode 9 recap: Who was eliminated in ‘More Bang For Your Buck’? [LIVE BLOG]
- How Gun Safety Laws Have (And Haven’t) Changed Since Pulse & What Still Needs to Be Done
- Why Tesla, MyoKardia, and Hologic Slumped Today
- Can Triad Group plc (LON:TRD) Maintain Its Strong Returns?
- EUR/USD Price Forecast – EURO Declines On Dovish Outlook
- Could The IXUP Limited (ASX:IXU) Ownership Structure Tell Us Something Useful?
- Top Trump advisor Bannon reportedly wants to hike taxes on the rich
- Islamic State's online supporters include 300 Americans - report
- Berry Global: Fiscal 1Q Earnings Snapshot
- How Does Flanigan’s Enterprises, Inc.’s (NYSEMKT:BDL) Earnings Growth Stack Up Against Industry Performance?