Roku ( ROKU Quick Quote ROKU - Free Report) recently acquired Quibi Holdings, which holds all of Quibi’s content distribution rights. Consequently, it has obtained exclusive global content distribution rights for Quibi’s content. The financial details of the acquisition remained undisclosed.
Per the deal, The Roku Channel will deliver Quibi’s 75 premium shows and documentaries to its users for free through an ad-supported model in 2021.
Moreover, in addition to Quibi’s existing content portfolio, The Roku Channel will introduce several other programs, which will be available exclusively on its platform. This will further expand Roku’s diverse content catalog, which includes 40,000 free movies and programs and 150 free live linear television channels.
Markedly, in December 2020, the company partnered with
AT&T ( T Quick Quote T - Free Report) -owned WarnerMedia, giving Roku users access to the HBO Max streaming service, which includes 10,000 hours of premium storytelling content. The company’s steady focus to expand its product lineup through content partnerships is expected to drive customer acquisition over the long haul.
Additionally, the company revealed that in the fourth quarter of 2020, the Roku Channel reached U.S. households serving an estimated 61.8 million people, doubling year over year. During the quarter, it was among the top 10 channels in terms of both streaming hours and active accounts.
Roku TV’s Solid Market Presence Bodes Well
Roku’s shares have surged 198% over the past year compared with the Zacks
Broadcast Radio and Television industry’s growth of 32.3%.
Growing customer acceptance of Roku TV models due to features like accessibility to free and paid streaming channels, voice compatibility for
Amazon’s ( AMZN Quick Quote AMZN - Free Report) Alexa, Apple’s ( AAPL Quick Quote AAPL - Free Report) Siri and Google Assistant-enabled smart devices along with easy-to-use remote and enhanced audio integration is a major positive.
The TV streaming platform provider also announced that, per NPD’s Weekly Retail Tracking Service, Roku OS was the No. 1 smart TV operating system (OS) sold in the United States and Canada.
Roku TV maintained its leading position in the United States and Canada with 38% and 31% of market share, respectively, based on available data from Jan 5 through Dec 26, 2020.
Further, this Zacks Rank #2 (Buy) company anticipates having reached 51.2 million active accounts in fourth-quarter 2020, an addition of 14 million accounts in the entire 2020. You can see
. the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Also, viewers are expected to have streamed 17 billion hours in the fourth quarter and 58.7 billion hours in 2020, an increase of 55% on a year-over-year basis for both the quarter and the full year.
Developments in Roku TV Ready to Drive Prospects
Roku continues to innovate over its TV offerings that’s helping it to win customers. The company recently introduced a new wireless soundbar reference design for consumer electronics companies. It uses the company’s proprietary audio technology to facilitate easy wireless connection with any Roku TV model.
The simple set-up, which reduces cord-cluttering and can be easily operated with one Roku TV remote, enhances viewers’ experience by providing seamless audio and video integration. Further, it will aid consumer electronic companies to build and sell wireless soundbars under their own brand.
TCL is anticipated to release the first wireless soundbar and will announce device specifics at its CES 2021 event on Jan 12. Further, Element is set to release a 2.0 Roku TV Ready Soundbar and 2.1 Roku TV Ready Soundbar + Subwoofer in the United States, later in January.
Notably, TCL, Hisense, Enclave, Sound United & Bose released Roku TV Ready certified audio products in the United States, in 2020. Moreover, Roku TV models are available from more than 15 TV OEM brands.
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