Roku is the leading TV streaming platform provider in the United States based on hours streamed.

The company reported 70 million active accounts as of Dec 31, 2022, a net increase of 9.9 million since Dec 31, 2020, attributed to the sale of stand-alone streaming devices, partnerships with TV brand partners like TCL, JVC, Sharp and other leading TV-makers who license the Roku OS to manufacture and sell Roku TV models, and licensing of Roku OS to certain service operators.

Moreover, Roku is benefiting from growth in advertising driven by monetized video ad impressions on the increasing popularity of The Roku Channel. Important factors contributing to this growth include the continued growing interest in streaming by traditional TV advertisers, as well as ongoing investment in the company’s OneView ad platform and overall ad tech capabilities.

Roku reported revenues of $3.1 billion in 2022. The Los Gatos, CA-based company operates through two reportable segments: Platform and Player.

The Platform segment generates revenues from advertising sales, subscription and transaction revenue shares, the sale of branded channel buttons on remote controls and licensing arrangements with TV brands and service operators. In 2022, Platform revenues increased 20% year over year to $2.7 billion.

The Player segment derives revenues from the sale of streaming players through consumer retail distribution channels, including major brick and mortar retailers, such as Best Buy and Walmart, and online retailers, primarily Amazon.

Roku’s latest innovation in the Devices category, the new TCL Roku TV 6-Series won the CNET Editor’s Choice award in 2022 and was described as the “best TV for the money” for the fifth year in a row.

In 2022, Roku generated $415 million player revenues, down 17% year over year in volume of streaming players sold. Roku became the No. 1 TV streaming platform by hours streamed in the U.S., Canada, and Mexico.

Roku faces immense competition from existing local traditional pay TV services and products. Companies such as Amazon, Apple and Google offer TV streaming devices that compete with Roku streaming players and Roku TV. Additionally, Google and Amazon license their respective OS for integration into smart TVs.