The news: Roku’s quarterly results showed resilience and that consumers want free content.
Our take: The Roku Channel is a compelling advertising opportunity and may ultimately benefit from an increase in FAST consumption. In the US in 2020, just 40% of viewers watched FAST platforms; just three years later that figure is 57%.
Price-conscious consumers are willing to watch ads in exchange for a free experience, and Roku has wisely engaged in arbitrage to find “good enough” content—such as the recent Formula E deal—that will sate the appetite of many viewers.
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