Tag: Roku

Roku Loses $487 Million in Cash Following Silicon Valley Bank Failure

Streaming video pioneer Roku says it lost $487 million, or 26% of its cash and cash equivalents, following the sudden March 10 closure of Silicon Valley Bank by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (FDIC) as the bank’s receiver.

San Jose-based Roku, in a regulatory filing, said it has about $1.4 billion of its cash and cash equivalents deposited across numerous financial institutions, including SVB, whose collapse is reportedly the largest banking failure since the Great Recession in 2008.

Roku said its deposits with SVB are largely uninsured, and it does not know to what extent it would be able to recover its cash on deposit at SVB. In the filing, the FDIC said all insured depositors of SVB would have full access to their insured deposits no later than Monday morning, March 13.

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The FDIC will pay uninsured depositors an advance dividend within the next week. Uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds. As the FDIC sells the assets of SVB, future dividend payments may be made to uninsured depositors.

Notwithstanding the closure of SVB, Roku said it believes that its existing cash and cash equivalents balance and cash flow from operations will be sufficient to meet its working capital, capital expenditures, and material cash requirements from known contractual obligations for the next 12 months and beyond.

Roku, Best Buy Announce ‘First-to-Market’ Business Relationship

Roku and Best Buy March 10 announced a first-to-market relationship across their advertising and retail businesses. For the first time, Best Buy is partnering with a TV streaming platform to provide its first-party data for targeting and closed-loop measurement.

Roku’s scale of 70 million active accounts paired with Best Buy’s customers aims to help advertisers make their marketing more effective.

Best Buy will also give consumers exclusive access to Roku-branded TVs.

According to eMarketer, in 2022, 82% percent of U.S. advertisers planned to increase spending levels with retail media networks such as Best Buy Ads. Consumer electronics brands are among the leaders in this growth. 

“We’re bringing together our entire business to build the future of entertainment and advertising — making the TV experience simpler, offering the right marketing, data, tech and scale to drive real results,” Julian Mintz, co-head of U.S. brand sales for Roku Media, said in a statement.

Separately, Roku’s first-ever TVs designed and made by Roku are now available in the United States exclusively at Best Buy stores and BestBuy.com.

The marketing relationship is kicking off with an in-person, interactive activation at the SXSW confab in Austin, Texas, on March 11. For the first time, Roku will bring its Roku City screensaver to life with an interactive, multi-level activation at SXSW. The pop-up will feature a Best Buy Home Theater Experience, showcasing the latest Roku devices available at Best Buy as well as new Roku originals and featured entertainment on the Roku Channel.

“Roku City featuring the Best Buy Home Theater Experience” will be open from 11 a.m. to 6 p.m. CT. The pop-up will be located at the Riley Building at 315 Lavaca Street in Austin.

Roku Bows Updated Operating System, New Branded TVs

Roku March 9 announced the availability of OS 12, the streaming device/platform manufacturer/distributor’s newest operating system for connected televisions, soundbars and related consumer electronics.

The San Jose, Calif.-based company also announced the retail availability of its new Roku Select and Plus Series TVs, first unveiled at CES Las Vegas. Available in 11 models ranging from 24-inch to 75-inch screens, the HD and 4K TVs are the first ever to be both designed and made by Roku. The TVs feature automatic brightness, wireless sound expandability, Bluetooth Private Listening, and Roku Voice Remote Pro, among other features. The units are offered exclusively Best Buy stores and BestBuy.com.  The new Roku Wireless Soundbar will be available exclusively at Best Buy stores and online later this month.

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Roku Names Dan Jedda as New CFO, Replacing Departing Steve Louden

Roku March 8 announced that Dan Jedda will join the company as chief financial officer, effective May 1. He will report to founder/CEO Anthony Wood. Jedda will succeed current CFO Steve Louden, who announced he was leaving Roku last year. Louden will work closely with Jedda until he departs the company in August.

Dan Jedda

Since 2020, Jedda has been the CFO at Stitch Fix. He oversaw global corporate finance, investor relations, financial planning and reporting, accounting, tax, treasury, and internal audit. Prior to Stitch Fix, Jedda worked at Amazon for 15 years, predominantly as VP and CFO for digital video (including Amazon Studios), digital music, and the advertising and corporate development organizations. He also oversaw the digital video and advertising economist and analytics team.

“As our U.S. active accounts approach half of U.S. broadband households, we are thrilled to have Dan join our executive team,” Wood said in a statement. “As we recently shared, we are committed to a path that delivers positive adjusted [pre-tax earnings] next year, and Roku will benefit from Dan’s relevant experience and proven leadership as we move through our next stage of growth.”

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Steve Louden

Before his stint at Amazon, Jedda served as a controller for Toshiba America. He also spent several years at Honeywell and ADC Telecommunications in various business finance roles, including treasury and internal audit. He received a B.A. in accounting and finance from the University of St. Thomas and an MBA from the University of Minnesota.

CEO Anthony Wood: Original Content, Lionsgate Movies Help Drive Roku Channel Engagement

Nearly a year ago Roku inked a multiyear Pay 1 distribution deal with Lionsgate for the studio’s theatrical releases streaming on the Roku Channel. Fast-forward to the present and that agreement, together with original produced content, drove platform user engagement up 85% in the most-recent fiscal period for the free ad-supported VOD service. Platform revenue in 2022 increased 20% ($446.5 million) to $2.7 billion largely due to advertising.

Speaking March 6 at the Morgan Stanley Technology, Media and Telecom Conference in San Francisco, Roku founder/CEO Anthony Wood said the Roku Channel has evolved from streaming older catalog content to current box office releases and its first original movie Weird: The Al Yankovic Story, starring Daniel Radcliffe as the eccentric comedian, in addition to shows such as “The Great American Baking Show,” “Martha Gardens” and “Emeril Tailgates,” among others.

It also offers “MovieSphere by Lionsgate” a free ad-supported streaming TV (FAST) channel featuring catalog movies such as The Hurt Locker, The King’s Speech and La La Land, and series from every genre and decade.

Pending Lionsgate theatrical releases earmarked for The Roku Channel (after box office and retail) include Expendables 4; Eli Roth’s Borderlands; Are You There God? It’s Me, Margaret from director James L. Brooks; White Bird: A Wonder Story, with Helen Mirren and Gillian Anderson; and The Unbearable Weight of Massive Talent headlined by Nicolas Cage.

“It’s not only a great way for us to sell ads, but it’s also a reason people buy Roku devices because they get the Roku Channel,” Wood said.

Roku, which broke its teeth connecting the television to the internet through a branded Netflix player streaming device in 2008, now has more than 70 million active accounts accessing third-party streaming services via the Roku platform, which includes the Roku Channel.

Roku now divides advertising revenue two ways: Display ads on the platform that include selling the entire Roku home page to Disney+ for the debut of a new season of “The Mandalorian,” and ads inserted in AVOD content, according to Wood.

“It’s kind of delightful to turn on your TV and see a ‘Mandalorian’-themed background for a couple of days,” Wood said. “Disney likes it because 70 million households turn on their TV and see [the show].”

Roku, Best Buy Partner for SXSW Confab Exhibit March 11-12

Roku is partnering with Best Buy to host its first-ever South by Southwest (SXSW) conference pop-up display, “Roku City featuring the Best Buy Home Theater Experience.” Roku City refers to a screensaver on Roku smart-TV devices and televisions that displays a pink, blue and purple cityscape featuring various movie references.

The activation will be open to the public March 11-12 from 11 a.m. to 6 p.m., local time (CT). The pop-up will be located at the Riley Building at 315 Lavaca Street in Austin.

The multi-story building display aims to bring “Roku City” to life as an interactive experience. During SXSW, attendees will be able to step “inside” the screensaver where they can:

  • stop in at the Roku City Style Shop and choose a new look featuring creative, purple accents;
  • reserve a booth at the Roku City Rooftop Diner via OpenTable and find movie and TV references hidden within the diner’s pop-up menu; and
  • relax at the Best Buy Home Theater Experience to check out the latest Roku devices available at Best Buy and new Roku Originals and entertainment on The Roku Channel.

 

The opening of Roku City offers an opportunity to “spark conversations” around the ways brands can activate based on organic feedback from their audiences, while also exploring the continued value of IRL experiences in an increasingly digital-first world, according to Roku.

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“There’s so much more to streaming than shows or movies punctuated by ad breaks,” Damon Van Deusen, VP of global brand and creative for Roku, said in a statement. “We’re excited to invite everyone to step into [that] world for the first time at SXSW.”

“Any opportunity to work with a partner like Best Buy is exciting,” added Julian Mintz, co-head of U.S. brand sales for Roku. “Our brands share a deep passion for entertainment.”

Roku Reports Increased Q4 Subscribers, Streaming Hours as Device Sales Plummet

Subscription streaming video pioneer Roku Feb. 15 said it generated a 16% increase in active user accounts to 70 million in the fourth quarter (ended Dec. 31, 2022), from 60 million at the end of 2021. Streaming hours increased 23% to 23.9 billion hours, from 19.5 billion in the previous-year period.

San Jose, Calif.-based Roku also disclosed that its legacy consumer electronics business revenue dropped 18% to $135.8 million, from $166.4 million in the previous-year period. The devices division’s operating loss remained constant at $43.6 million, compared with an operating loss of $44 million during the previous-year period.

Average revenue per platform user grew to $41.68, up 2% from ARPU of $40.86, which is based in part on third-party SVOD revenue.

The company’s flagship free ad-supported streaming TV/AVOD platform The Roku Channel ended 2022 with 100 million U.S. households. In June, Roku launched Spanish-language programming in the U.S. with Espacio Latino, followed by Kids & Family en Español. In Q4, Roku bowed The Roku Channel to Mexico, where it has become the channel’s largest international market.

For the quarter, revenue was flat at $867 million, while the net loss ballooned to nearly $250 million, from a profit of $21.4 million in the previous-year period.

“While cyclical economic pressures are affecting our business, two things
remain true: the secular trend supporting our business remains intact, and the combination of our scale, engagement, and innovation position Roku exceptionally well to benefit when the market rebounds,” founder/CEO Anthony Wood and CFO Steve Louden wrote in the shareholder letter.

Roku Channel Serves Up Season Two Orders of ‘Martha Cooks’ and ‘Emeril Cooks’

The Roku Channel has ordered second seasons of its originals “Martha Cooks,” featuring March Stewart, and “Emeril Cooks,” with Emeril Lagasse.

“Emeril Cooks” season two will debut Feb. 17, and “Martha Cooks” season two will debut April 3. The series starring the culinary and lifestyle icons will stream exclusively on The Roku Channel.

The first seasons of both “Martha Cooks” and “Emeril Cooks” premiered in the fall of 2022 on The Roku Channel.

The second season of “Emeril Cooks” brings viewers to the cook’s beloved New Orleans to experience the unique blend of tradition and innovation that powers his cooking. The new season will feature 10 30-minute episodes. The series is produced by Marquee Brands for The Roku Channel.  

 

The second season of “Martha Cooks” welcomes viewers into Stewart’s farm kitchen and visits some of her favorite places to create cuisine, confections and treats. Working with world-renowned chefs and friends, she will reveal techniques and how-to instructions. The new season will feature 10 30-minute episodes. The series is also produced by Marquee Brands for The Roku Channel. 

 

In addition to Roku originals starring Stewart and Lagasse, The Roku Channel offers viewers more content from the two for free. Audiences can stream complete seasons of library content, including “Martha Bakes” seasons 1-11, “Martha Stewart’s Cooking School” seasons 1-5, “Martha Stewart Living” seasons 1-11, “Essence of Emeril” seasons 1-11 and “Emeril Live” seasons 1-19.

The Roku Channel also has created dedicated linear channels with this programming, Martha Stewart Channel and Emeril Lagasse Channel. 

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Roku Partners With DoorDash for On-Demand Food Deliveries During Streaming Video

Roku Feb. 7 announced a multiyear deal with DoorDash, the local delivery e-commerce platform, granting a complimentary six-month DashPass (which reverts to $9.99 monthly fee on the seventh month unless canceled) to new and existing Roku account holders with a linked streaming or smart home device.

DashPass is a monthly membership program that offers subscribers free delivery fees on eligible orders from thousands of restaurants, grocery, convenience, and retail stores nationwide.

For the first year of the partnership, DoorDash will be the exclusive marketplace ad solution partner for DoorDash U.S. restaurants and grocers that buy interactive shoppable ads on Roku. This arrangement enables DoorDash merchants to place click-to-order offers within their Roku ads — and better attribute, target and measure TV streaming ads on the platform.

According to Roku data, 33% of Roku users order take-out or food delivery weekly. In addition, 36% of Roku users are interested in receiving interactive offers including a scannable QR code or text message.

“Streaming and delivery just go together, which is why we’re making it easier than ever for Roku users to order their favorite food right from their TV,” Gidon Katz, president of consumer experience at Roku, said in a statement.

Longtime DoorDash partner Wendy’s is joining forces with Roku to deliver fast food to streamers. Roku subscribers who see the Wendy’s ad will have access to $5 off with any Wendy’s purchase of $15 or more through March 12.

Rob Edell, GM and head of consumer engagement at DoorDash, said the partnership enables DoorDash merchant partners with an opportunity to promote service through TV streaming.

“Partnering with DoorDash and Roku as the first brand to enable shoppable TV offers is a new step towards our goal of being the best in delivery,” said Carl Loredo, U.S. chief marketing officer for The Wendy’s Company.

Roku Greenlights Three New Reality TV Shows

Roku announced the expansion of its unscripted original content slate with the greenlight of three new reality adventure series: “Fight to Survive,” “Reptile Royalty” and “UFO Cowboys.”  

Hosted by Akbar Gbajabiamila (“American Ninja Warrior,” “The Talk”), “Fight to Survive” takes viewers to a remote tropical island for an intense survival competition across episodes involving 17 contestants from previous reality survival shows, including “Survivor,” “Naked and Afraid” and “Alone” competing for the $250,000 top prize.

“Reptile Royalty” introduces viewers to the unpredictable world of social media’s Jay Brewer and his Reptile Zoo in Fountain Valley, Calif. Working alongside his three daughters and a colorful group of animal lovers, Brewer cares for more than 600 of the rare and exotic reptiles across six episodes. 

“UFO Cowboys” follows a group of ranchers, known as the Cowboy Sky Watchers, as they investigate paranormal happenings along the 37th Parallel over eight episodes.  Known as the “UFO Superhighway,” this area is known for UFO sightings and disturbances, with more supernatural and extraterrestrial sightings in the American West than anywhere else in the United States.

“Our latest trio of Roku Originals underscores our commitment to showcasing everyday people in extraordinary circumstances,” Brian Tannenbaum, head of alternative originals, said in a statement. “Each series offers our streamers a glimpse into an almost unbelievable world – with a mix of high stakes, fight, heart, and some humor along the way.” 

The series will exclusively debut later in 2023 on The Roku Channel.