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- Roku hasn’t always owned content that it could market to viewers.
- But that all changed when he bought this year’s failed Quibi streaming project in a major pivot
- Now, Roku is in competition with Netflix, which launched it in 2008.
Roku once had a huge appeal to customers – it didn’t have its own content to aggressively push viewers.
The so-called content-independent streaming player had become a domestic middleman, helping people watch
Netflix
,
HBO Max
, Amazon Prime Video and others on their TVs with its easy-to-use hardware.
But in 2021, everything has changed.
In January, Roku bought Quibi, the failed pandemic-era streaming project that wanted to capitalize on people’s short attention spans. And in May, Roku began streaming Quibi programming for free under the name Roku Originals on its ad-supported Roku channel.
The shift to serving original content is a radical departure from its long-standing business model, simply helping streamers showcase their content. He still has a long way to go, but now he is among the ranks of powerful players like Netflix, HBO Max and others.
It turns out the company, now worth over $ 40 billion, isn’t the abandoned Netflix spin-off it once was.
Netflix didn’t think Roku would be successful.
Netflix founder Reed Hastings.
Philippe Huguen / AFP / Getty Images
Roku’s first streaming box was launched in 2008 after being developed while its founder was working at Netflix and Roku simultaneously.
Reed Hastings and Roku founder Anthony Wood first worked together to produce a streaming box for Netflix that would allow viewers to stream content from anywhere, including Apple TV and Xbox, CNBC reported. . But those companies were far from excited about people watching Netflix on their platforms, and Netflix chose to cede the division – named Project Griffin – to Roku, and Wood followed suit.
“There was Xbox and PlayStation and Samsung and Apple TV,” Hastings told CNBC in June. “Frankly, we didn’t think Roku was very lucky.”
Netflix sold its remaining Roku shares in 2009 for a loss of $ 4.3 million, the outlet reported. If not, that stake would be valued at around $ 7 billion today.
Roku has made a name for itself in decentralized streaming devices and software. Roku’s own line of TVs has a 38% market share in the United States, according to data from the NPD Group. He also makes other accessories like sound bars.
It consumed the largest share of the connected TV market in the United States, beating Apple and Amazon, and ended 2020 with 51.2 million active accounts, in other words, 51% of American households had a Roku streaming device last year.
Roku is playing with big dogs now, including Netflix
Year
The Roku Channel
used to broadcast only dull content from other media companies. Its acquisition of Quibi represents the first set of original programming that Roku will own and stream on its platform.
This includes “Die Hart” with comedian Kevin Hart, “FreeRayshawn”, “Reno 911!” and “Chrissy’s Court” by Chrissy Teigen.
And it turns out yes, people are watching. The streaming giant said in June that the 10 most-watched shows on its Roku channel between May 20 and June 3 were Roku Originals.
He also plans to release 45 Roku Originals by the end of the year, with the $ 1 billion he raised in March could go towards original content production, a former board member told CNBC.
Indeed, earlier this month, the company said it was writing and producing “Zoey’s Extraordinary Playlist,” a canceled NBC program, in a film in what is another effort to embark on original programming.
However, Hastings told point of sale that Netflix does not view Roku as a competitor. “They are not a big threat to us,” he said.
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