Roku enters streaming industry
Roku announced on Wednesday that their free streaming service, which is run through ads, is available on computers and mobile devices. Originally, the service – called The Roku Channel – was only available for those who had a Roku TV.
The channel is not targeted at avid TV-viewers, as it does not have an abundance of content and the content it does have is somewhat outdated. However, the channel will certainly help them gain users, and if they can gain more content, it could pose a challenge for smaller streaming services like Hulu.
Roku has also added a “Featured Free” app on their devices, which delivers free content to all platforms. This stems from their partners and includes news, PeopleTV, and other shows.
After the news, Roku’s stock jumped over 21 percent on Thursday. Investors are bullish, as adding this feature will surely bring more users to its services, generating more money from ads. Over the past twelve months, Roku’s stock price has skyrocketed over 143 percent.
As Roku gains more popularity with this streaming service, their stock will likely continue to rise. Although they may not be able to compete with media giants like Netflix, they are certainly a new player for which competitors will have to watch out.