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State of the Screens

Roku’s Platform Business Is Just Getting Started

By May 29, 2018No Comments

The big question: How large can Roku’s ad business really become?

Total video subscribers:
1) AT&T — 25.4M
2) Comcast — 21.2M
3) Roku — 20.8M

Total ad revenue in 2017:
1) Comcast — $2.3B
2) Roku — $264M

Ad revenue per subscriber in 2017:
1) Comcast — $106
2) Roku — $15

The streaming wars are heating up! AT&T recently announced2 new streaming services to go along with it’s DirecTV Now offering. One of the services will be sports-free and start at$15/month while the other will be higher end ($80/month) with the goal of moving 25M satellite subscribers to streaming.

Quote from Randall Stephenson — CEO @ AT&T:
“Think about our traditional DirecTV product at a much lower cost point, meaning you don’t have satellites on roofs, you don’t have truck rolls. In fact, to provision this, the only truck roll required is going to be a UPS truck to deliver a very thin piece of hardware that you plug into your TV and your broadband outlet… The subscriber acquisition costs are literally 1/4 of what you see today.”

The streaming wars (monthly cost):
1) Hulu Live — $40
2) DirecTV Now — $35
3) Sling TV — $20
4) PlayStation Vue — $40
5) YouTube TV — $40
6) Verizon — TBD
7) Charter Spectrum TV Stream — $22
8) CenturyLink — $15
9) Comcast Instant TV — $18
10)
Philo — $16
11) Spectrum Choice — $25
12) AT&T WatchTV — $15
13) DirecTV TBD — $80

More #1: Deeper Dive — Why economics are driving pay TV disruption, not user experience

More #2: Virtual Pay TV Market Set for a Shakeout: Analyst

More #3: Here’s How Much More Satisfied Customers Are With Streaming Services Than Subscription TV

More #4: New Amazon Channels Data Shows Why Apple Wants to Copy It

Michael Beach

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.