Yesterday Roku will lay off approximately 6% of the company’s workforce.
Expects to incur $30-35 million of non-recurring charges
Roku has revolutionised the steaming industry with its user-friendly devices, software, and services.
Boasting an unparalleled user base of over 70 million active accounts, this streaming platform reigns supreme. Despite its wide-ranging content library, which is its biggest draw, it is reliant on third-party providers. In the event of their sudden departure, the platform risks becoming futile.
Amazon's Fire TV and Apple TV are fierce competitors in the market as well.
Over the past year, Roku witnessed a growth of 16%, cementing its position as an increasingly influential ad platform. However, its heavy dependence on advertising revenue leaves it susceptible to fluctuations in the ad market that could potentially hinder its financial performance.
With its established presence in the streaming industry, Roku's brand is a force to reckon with. The logical step of diversifying its offerings to include original content has the potential to drive new user acquisition.
Moreover, the comparative affordability of Roku's services, which is half the price when compared to last year, is certainly a compelling reason to consider the platform as a valuable addition to one's portfolio.
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