Roku CEO Takes Credit for Disney Reaching 26.5 Million Streaming Subs

Disney said it generated 10 million Disney+ subscribers in the first 24 hours of launching — largely through its app. How it reached 26.5 million subs just six weeks later, well, Roku would like to take some credit for that milestone.

Speaking on a Feb. 13 earnings call, Roku founder/CEO Anthony Wood told analysts that with the company’s signature streaming media device ranked No. 1 (by Parks Associates) in the domestic market, having access to the Disney+ app on its platform help jump start subscriptions.

“One of the things Disney did, is they really lean into the tools that we have available on our platform,” Wood said. “And when companies do that, I mean, we’ve built a lot of great ways to sign up subscribers. So, I think we were an important part of them reaching that milestone.”

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Wood, who contends half of all domestic pay-TV subs will cut the cord by 2024, doesn’t see linear TV distributors such as Comcast entering the over-the-top video market as a threat.

“We have the Xfinity app on Roku,” he said. “And I have it on my Roku, and that’s what I use to watch TV sometimes. [But] we just don’t see competing with traditional cable distributors, it’s a big part of our [OTT] competitive dynamic.”

Wood said the pending rollout of the Peacock streaming service by NBC Universal would likely give Roku an additional third-party app to market — although no official agreement has been reached.

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Roku monetizes its platform on a revenue-sharing basis for third-party SVOD services and splits ad-revenue for AVOD platforms. The company said it made $23.14 per user in 2019 — up $5.19 per user in 2018.

“We’re an essential partner for any streaming services trying to build a national audience in United States,” he said. “So, I think it would be natural to assume that there will be some sort of [Peacock] deal down the road.”

 

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