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ROKU Expands FAST Offering for Roku Channel With NBCUniversal
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Roku Inc. (ROKU - Free Report) recently announced a collaboration with Comcast (CMCSA - Free Report) -owned NBCUniversal (“NBCU”) to bring new free ad-supported streaming TV (FAST) linear content offerings to The Roku Channel. These offerings include a variety of fan-favorite programming from the NBCU Global Distribution library.
This partnership expands NBCU's existing FAST relationship with Roku, which already includes channels like NBC News Now, Dateline 24/7, Today All Day, LX, NBC local channels, Telemundo regional news channels, Sky News International and The Rotten Tomatoes Channel.
The new linear content offerings on The Roku Channel include popular shows like Little House on the Prairie and Universal Crime featuring shows like Columbo, Kojak and The Rockford Files.
Alongside the existing offerings, new FAST channels are being introduced to The Roku Channel. These include Saved By The Bell, Teen NBC and Bad Girls Club, each with its own unique content and themes.
There are plans to launch more FAST channels later in the year, including Universal Action with action-packed series like The A-Team, Magnum P.I. and Knight Rider. Alfred Hitchcock Presents will also be available, showcasing mysteries created by the legendary filmmaker.
This collaboration between Roku and NBCUniversal aims to provide viewers with a wide range of popular content options, expanding the offerings available on The Roku Channel.
Audiences can enjoy these channels through The Roku Channel's Live TV Guide. The Roku Channel is accessible on Roku devices, Amazon Fire TVs, Samsung TVs, Google TV and other Android TV OS devices.
Roku Faces Major Headwinds From Strong Competition
The Roku Channel is distributed mainly to Roku’s 73.5 million active accounts and ended 2022 with reach to households with 100 million people. Shares of Roku have gained 94.3% year to date compared with the Zacks Consumer Discretionary sector’s rise of 27.4% in the same time frame.
Despite investing in growing its library, this Zacks Rank #3 (Hold) company faces immense competition from existing local traditional pay TV services and products, including those provided by incumbent pay TV service providers like Amazon (AMZN - Free Report) prime video and Netflix (NFLX - Free Report) besides mobile streaming platforms. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
According to 9TO5Mac, which cited a JustWatch report, Amazon prime video was #1 in terms of market share (21%) in the United States, trailed by Netflix (20%). Max, Disney+ and Hulu had 15%,13% and 11% market share, respectively. Apple TV+ maintained its market share of 6%.
The Roku Channel remains a top-five channel on the platform by both active account reach and streaming hour engagement. In second-quarter 2023, streaming hours on The Roku Channel grew more than 50% year over year. For the first time, Nielsen reported that The Roku Channel was 1.1% of total U.S. TV viewing in May, which represented 3% of streaming hours and was in line with Peacock and close to HBO Max.
Platform revenues (87.8% of revenues) increased 11.1% year over year to $743.8 million. The increase was mainly due to a rise in revenues from content distribution services, such as revenue share on content subscriptions and premium subscriptions through The Roku Channel, in addition to moderately higher revenues from advertising. The trend is expected to continue in the rest of 2023.
The Zacks Consensus Estimate for ROKU’s third-quarter 2023 platform revenues is pegged at $717.88 million.
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ROKU Expands FAST Offering for Roku Channel With NBCUniversal
Roku Inc. (ROKU - Free Report) recently announced a collaboration with Comcast (CMCSA - Free Report) -owned NBCUniversal (“NBCU”) to bring new free ad-supported streaming TV (FAST) linear content offerings to The Roku Channel. These offerings include a variety of fan-favorite programming from the NBCU Global Distribution library.
This partnership expands NBCU's existing FAST relationship with Roku, which already includes channels like NBC News Now, Dateline 24/7, Today All Day, LX, NBC local channels, Telemundo regional news channels, Sky News International and The Rotten Tomatoes Channel.
The new linear content offerings on The Roku Channel include popular shows like Little House on the Prairie and Universal Crime featuring shows like Columbo, Kojak and The Rockford Files.
Alongside the existing offerings, new FAST channels are being introduced to The Roku Channel. These include Saved By The Bell, Teen NBC and Bad Girls Club, each with its own unique content and themes.
There are plans to launch more FAST channels later in the year, including Universal Action with action-packed series like The A-Team, Magnum P.I. and Knight Rider. Alfred Hitchcock Presents will also be available, showcasing mysteries created by the legendary filmmaker.
This collaboration between Roku and NBCUniversal aims to provide viewers with a wide range of popular content options, expanding the offerings available on The Roku Channel.
Audiences can enjoy these channels through The Roku Channel's Live TV Guide. The Roku Channel is accessible on Roku devices, Amazon Fire TVs, Samsung TVs, Google TV and other Android TV OS devices.
Roku, Inc. Price and Consensus
Roku, Inc. price-consensus-chart | Roku, Inc. Quote
Roku Faces Major Headwinds From Strong Competition
The Roku Channel is distributed mainly to Roku’s 73.5 million active accounts and ended 2022 with reach to households with 100 million people. Shares of Roku have gained 94.3% year to date compared with the Zacks Consumer Discretionary sector’s rise of 27.4% in the same time frame.
Despite investing in growing its library, this Zacks Rank #3 (Hold) company faces immense competition from existing local traditional pay TV services and products, including those provided by incumbent pay TV service providers like Amazon (AMZN - Free Report) prime video and Netflix (NFLX - Free Report) besides mobile streaming platforms. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
According to 9TO5Mac, which cited a JustWatch report, Amazon prime video was #1 in terms of market share (21%) in the United States, trailed by Netflix (20%). Max, Disney+ and Hulu had 15%,13% and 11% market share, respectively. Apple TV+ maintained its market share of 6%.
The Roku Channel remains a top-five channel on the platform by both active account reach and streaming hour engagement. In second-quarter 2023, streaming hours on The Roku Channel grew more than 50% year over year. For the first time, Nielsen reported that The Roku Channel was 1.1% of total U.S. TV viewing in May, which represented 3% of streaming hours and was in line with Peacock and close to HBO Max.
Platform revenues (87.8% of revenues) increased 11.1% year over year to $743.8 million. The increase was mainly due to a rise in revenues from content distribution services, such as revenue share on content subscriptions and premium subscriptions through The Roku Channel, in addition to moderately higher revenues from advertising. The trend is expected to continue in the rest of 2023.
The Zacks Consensus Estimate for ROKU’s third-quarter 2023 platform revenues is pegged at $717.88 million.