https://www.fool.com/investing/2021/02/02/5-top-stocks-for-february/
Enter Roku. The company provides users with access to all of their streaming services via a single platform, and it's benefiting in huge ways from the shift from traditional pay-TV to streaming services.
Every time a user signs up for a video streaming service on Roku's platform, it takes a cut of that subscription. The company also makes money by selling ads on its platform. Both of these are massive opportunities for Roku. Last year, 6 million U.S. households cut their traditional pay-TV services, and according to forecasts, by 2024, less than half of U.S. households will still be signed up for pay-TV service. These people aren't abandoning televised entertainment, of course -- they are opting for video subscriptions instead.
This shift pushed Roku's active accounts up to 51 million as of the end of 2020, an increase of 14 million for the year. Those customers are also streaming lots of content -- 51.8 billion hours to be exact. This surge helped lift Roku's revenue by 73%year over year in the most recent quarter, and boosted average revenue per user by 20%. ..." |
