Business description Roku is the market leader in the streaming TV industry, with 43M accounts. The business has two segments, Player and Platform. The Player segment consists of Roku’s hardware, its streaming devices, while the Platform segments (70% of revenues, up from 45% in 2017) consists of revenue generated from the Roku operating system, including advertising revenue (most of the revenues), subscription revenue and transaction revenue. The Player segment carries gross margins below 10% as Roku prioritizes its installed base rather than profit in this segment.
What do you think monetization, specifically ARPU, can look like in the future (next 5 - 10 years)? I'd guess it'll be somewhere between linear TV and FB ads. With the NBC - Peacock deal, Roku will not be collecting any ad revenue (https://www.engadget.com/nbc-peacock-now-available-for-roku-streaming-devices-144123980.html). NBC threatened to pull all other content from the platform if Roku held strong. Do you see this supplier relationship as a risk to future monetization? I'm trying to make sense of today's price - I like the company but it seems like a lot needs to go right in terms of monetization.
What do you think monetization, specifically ARPU, can look like in the future (next 5 - 10 years)? I'd guess it'll be somewhere between linear TV and FB ads. With the NBC - Peacock deal, Roku will not be collecting any ad revenue (https://www.engadget.com/nbc-peacock-now-available-for-roku-streaming-devices-144123980.html). NBC threatened to pull all other content from the platform if Roku held strong. Do you see this supplier relationship as a risk to future monetization? I'm trying to make sense of today's price - I like the company but it seems like a lot needs to go right in terms of monetization.