Today Roku announced its 1st quarter 2019 earnings and Roku’s ad/subscription revenue has 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. Rokus revenue from selling streaming devices was just $72.% million in the 1st quarter of 2019. That is up just 18% from $61.5 million in the 1st quarter of 2018. Overall Roku’s revenues went up 51% over the same period in 2018.
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.
Are you happy paying less for a streaming player if it makes money from the ads you see? Leave us a comment and let us know.
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