Recently eMarketer took a deep look at Roku’s ad sales and the future of Roku’s ad sales. According to eMarketer Roku’s ad revenue will grow to $433 million in 2019 and $632.9 million in 2020. Roku recently announced its 1st quarter 2019 earnings and Roku’s ad/subscription revenue continued to climb to a new record. In the 1st quarter of 2019 Roku’s revenues from things like ads and subscriptions was $134.2 million up 79% from $75.1 in the 1st quarter of 2018. According to eMarketer Roku’s rapid growth in ad revenue will continue through 2019 and 2020.
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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