The news: Roku is increasingly turning to original content, including the Funny or Die-produced “Weird Al” Yankovic biopic “Weird,” with a $12 million budget.
Ads > devices: A manufacturer of streaming media equipment with more than 58.7 million active users in the US per our forecast, Roku now relies more heavily on ad spending and content distribution than device sales.
Acquisitions on the cheap: Roku doesn’t have the content budget of a Disney ($30 billion) or Netflix ($17 billion); according to reports, the company spends only $1 billion a year on content.
The challenge: Roku needs users who buy its devices to access subscription apps like Netflix, Hulu, and Prime Video to spend more time exploring the free material available on the Roku Channel, which contains 40,000 movies and TV series and 150 linear channels.
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