In the next few years, About half of U.S. households will be subscribers, many of whom will never subscribe to traditional pay-TV services, according tomedia. In Roku’s latest quarterly results, the company is entering a new year and is now known to have nearly 37 million active users. Roku CEO Anthony Wood says 2020 will be the beginning of a “streaming decade.”
On February 13, local time, Roku said its revenue and gross profit outlook for the fourth quarter of 2019 exceeded expectations. For the full year, Roku’s revenues of more than $1.1 billion continue to be at the top of the U.S. streaming platform, at least in terms of streaming hours — 40.3 billion hours a year.
In 2019, Roku’s platform revenue grew 78% year-on-year to $740.8 million, with full-year net income up 52% and gross profit up 49%. In addition, the company added 9.8 million active subscribers for the year, and streaming time increased 16.3 billion hours from a year earlier.
In a letter to shareholders, Roku noted that the company is looking ahead to a “decade of streaming” and noted that the market is now stepping up the transition to streaming, “which will encourage more viewers to spend more time on streaming and less time for traditional pay-TV, and many consumers are leaving the traditional pay-TV ecosystem altogether.” “
Roku expects that by 2024, about half of All American households will be giving up cable and satellite television altogether. The company’s goal is to continue to thrive in this expected shift from mass to streaming, and its Roku Channel will remain a key driver of the company’s bottom line.