, a study done for Roku by Macro Consulting that draws from both Roku-using and non-Roku-using respondents, obviously advances the company’s agenda. But it can’t be discounted as it mirrors recent third-party data on streaming. Many pay-TV providers, especially satellite operators DirecTV and Dish, expect subscriber losses to continue, while streaming has grown even before new offerings from Disney, Apple and WarnerMedia hit the market.
Just as the report was released, though, news from Facebook and Comcast took a bite out of Roku’s stock. Midway through the trading day, shares were down 14% to about $129.In 2019 to date, the stock has quadrupled as Roku has delivered strong quarterly growth and expanded its licensing and advertising businesses. Shares have pulled back noticeably in recent sessions based on announcements from rivals.
Facebook, meanwhile, has rolled out a new lineup of Portal devices, including Portal TV, a $149 device that converts a TV set into a social media hub and a venue for Facebook Watch programming. The Comcast and Facebook approaches to streaming share one common business goal: selling advertising. Roku’s study nodded to the rise of ad-supported video on demand [] of late. It found that 73% of the streaming viewers in its survey watch AVOD and 45% of them watch free programming more than any other kind of streaming fare. Not surprisingly, respondents also told Roku that they find traditional linear TV has too many ads.
Roku should really look to partner with a content company somehow. Being a lone wolf out there might only be good for so long...
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