When Roku in January announced it had acquired streaming rights to 75 original shows from the shuttered Quibi SVOD platform, little reason was given why the CE manufacturer coveted short-form scripted series, alternative and reality programming featuring Idris Elba, Kevin Hart, Liam Hemsworth, Anna Kendrick, Nicole Richie and Chrissy Teigen, among others. In addition to titles previously premiered on Quibi, more than a dozen new programs will make their debut on The Roku Channel.
Speaking on the Feb. 19 fiscal call, Roku founder/CEO Anthony Wood said the content acquisition underscored the burgeoning growth of ad-supported VOD. Wood said growth of The Roku Channel is twice as fast as the Roku platform, ending 2020 with 63 million monthly viewers.
“As our scale grows, we are looking, sourcing different types of content,” he said, alluding to the addition of 100 content channels to the streaming VOD platform in 2020.
“The Quibi deal fits into that, in a sense that it’s premium content that we think will appeal to Roku viewers,” Wood said. “It was a transaction where we acquired the global content rights on a cost-effective basis.”
The executive said AVOD helps content owners and publishers distribute their content in a cost-effective alternative manner to broadcast TV, which he said saw a 21% decline in primetime ratings last year, according to Nielsen.
When asked why an advertiser would market directly with Roku rather than an over-the-top video distributor like Peacock or Hulu, Scott Rosenberg, VP and GM of platform business, said it’s a matter of reaching target vs. large audiences.
“If you buy ‘The Office,’ you buy a specific show [and] you’re going to do that directly with the network,” he said. “But if you’re optimizing for reach and frequency and performance, investing with Roku is a key factor.”
“There is a lot of content out there, it’s available on a lot of different business models,” added Wood. “Content owners are looking for ways to monetize their content. We have multiple ways to do that.”