Roku unveiled its Q1 2018 results this week. The biggest surprise was that his advertising revenues exceeded those of hardware sales. We may not like commercials, but apparently they pay.
Hardware sales are not ephemeral: According to Investor's Business Daily one in four smart TVs sold in the last quarter was that of Roku TV. In total, the company had more than 6 million new active users and exceeded earnings expectations.
In the same report, the company said it earned $ 75.1 million through advertising and fees, and $ 61.5 million on its devices. Roku's CEO, Anthony Wood, declared Variety "This clearly shows that our business model works."
The company explained how the ads on its platform could be beneficial in a letter to shareholders, published earlier this week:
Today, about 10% of all adults between 18 and 34 can only be reached on television on the Roku platform of the show. We expect this number to increase, which should make our platform an even more important way for brands to engage viewers.
According to Roku's analysis, his advertisements are successful because there are not so many. Specifically, the company stated that streaming ads were more effective (19459008), as consumers found ads more memorable than those shown on linear television channels, in part because of the reduction in the number of TV ads. 39; OTT.
That said, Roku has not been immune from criticism on his commercials. Last year, the company took a little heat when it was revealed that it was selling data on user habits, and that viewers who opt in and change in opinion will not be able to purge the data already been collected.
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