2016 wasn’t kind to everyone, but there was one company who seemed to have a good time. Roku, one of the world’s leading streaming platforms, experienced record growth resulting in nearly $400 million dollars in revenue. The company’s 13.6 active accounts streamed a record-breaking 1 billion hours of video and music in December and 9 billion for the entire year. According to Nielsen, in December 2016, Roku accounted for 48 percent of active streaming players in the U.S. In addition, the Media and Licensing segment, which includes content consumption and promotion, licensing, and advertising sales on the platform, exceeded $100 million in high-margin revenue. The company is rumored to be seeking 200 million dollars in funding and has thus far raised more than $210 million in funding over several rounds, with investors including News Corp., Sky, Viacom, Hearst Corporation, Fidelity Investments, and Menlo Ventures. That new funding comes with a valuation of around $1.5 billion, according to Fortune.
“Our strategy to grow accounts, engage our audience, and increase monetization is clearly working with 46 percent year-over-year growth in active accounts, 70 percent year-over-year growth in streaming hours and 100+ percent year-over-year growth in media and licensing revenues,” said Roku Founder and CEO Anthony Wood. “The investments we are making in our platform to enable advertisers and content publishers to reach our rapidly growing audience are paying off, and we are still in the early stages of our capabilities.”
Roku offers consumers a collection of 4,500+ paid and free ad-supported video streaming channels including 450,000 movies and TV shows. According to IHS, in 2016, Roku TV models accounted for 13 percent of all smart TV sales in the U.S., only two years into the program.