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Roku’s CEO says adverts are the company’s future

Company is gaining more revenue from its platform business than digital media players

The CEO of Roku, Anthony Wood, says the company’s future lies in advertising as the company shifts towards streaming video ads.

In an interview with Business Insider UK, Wood said Roku data suggests ads placed in streaming video are more effective than the ads that are interspersed in traditional broadcast or cable TV; while about 10% per cent of Americans aged 18 to 34 can only be reached with TV ads via Roku’s platform, as they are not consuming traditional TV via the streamer.

Those factors “are what’s driving the shift” toward streaming video advertisements, Wood said.

Roku reported its fourth quarter revenue, which revealed the platform business brought in 45 per cent of Roku’s revenue, up from 36 per cent in the first quarter of 2018.

However, Wood said the company plans to stay in the hardware business. Because Roku designed its software to work on relatively inexpensive and underpowered devices, it can offer its player at low prices and still make money on them, Wood said.