Roku Adds 2.3 Million Active Accounts, Crosses 21.9 Billion Hours Streamed in Third Quarter
On Nov. 2, Roku released its earnings report for the third quarter of 2022. The company revealed that its free ad-supported TV (FAST) service the Roku Channel added 2.3 million “incremental active accounts” in Q3, bringing its global total to 65.4 million. The streaming platform also reported a 90% year-over-year increase in Roku Channel streaming hours.
Roku announced that during Q3, users streamed 21.9 billion hours of content, an increase of 1.1 billion over the previous quarter.
The previous quarter’s advertising revenues saw a significant slowdown for the Roku Channel, and the company expected that dip would continue in the short term due to larger economic concerns. That expectation was confirmed in Q3, as the company’s total advertising revenue came in at $670.4 million, a $2.8M decline from the $673.2M it reached in Q2.
Roku has been lagging behind other FAST services like Pluto, which reported having 70 million active users in Q2. Roku is still ahead of FOX’s FAST service Tubi, which reported having 51 million users in the second quarter. Amazon’s Freevee does not report its subscriber numbers.
Roku needed a better quarter than it had in the three months prior to Q3. The company’s stock price dropped by over 20% the day after its last earnings call, thanks to the poorer-than-expected growth it showed. The company has to face more competition than ever nowadays, as other equipment manufacturers like Samsung and VIZIO have started FAST services of their own.
Roku should get a boost from expanding its footprint globally. The Roku Channel launched in Mexico on Oct. 13, bringing thousands of hours of free content to audiences in that country. The content selection comes from existing global partners like Sony, Lionsgate, and renowned local partners such as Telefórmula with more titles being added over time.
The streaming service has also been partnering with other providers in an attempt to boost its own profile. In August it began offering a premium subscription option to Paramount+ via the Roku Channel. As part of the deal, Roku created a live TV guide for all of Paramount+’s live programming, which marks the first time that Roku has ever had a dedicated programming guide for a premium subscription partner.
The channel has added a ton of programming this quarter, including “The Rich Eisen Show,” Court TV and Ion, and more. In July, the Roku Channel also added local NBC News affiliates in eight markets.
Free ad-supported TV is a large and growing segment of the streaming market. Over 50% of streaming customers are willing to watch ads in exchange for cheaper streaming, and the opportunity for FAST services has never been better. But just like the subscription video-on-demand (SVOD) market, there are more FAST options than ever before, and platforms like the Roku Channel will have to continue innovating to keep their market share as high as possible.
Roku Channel
The Roku Channel is a free live TV streaming service that provides 350+ live linear streaming channels and more than 80,000 free movies and TV shows. The library contains entertainment from several different decades, including some major hits.