California-based streaming company Roku has filed for an initial public offering (IPO), according to papers filed with the Securities and Exchanges Commission yesterday. The company’s streaming and TV media player provides access to services offered by Netflix, Hulu, Amazon and others.
Roku had 15.1 million active accounts as of June 30, according to the SEC filing. Its users have streamed more than 6.7 billion hours during the first half of 2017. The company says it streamed 2.9 billion hours, including programming supported by advertising, in the six months ended June 30, a 76 percent jump from a year earlier.
Advertising is a crucial revenue stream for Roku. In the first six months of 2017, advertising revenue grew by 91 percent to represent 41 percent of the company’s bottom line. The other 59 percent of the company’s finances still comes for selling its media devices.
Roku filed for an IPO of up to $100 million. However, the share price was not set in the paperwork.
“Our mission is to be the TV streaming platform that connects the entire TV ecosystem,” Roku founder and chief executive Anthony Wood said in a letter included in the filing.
“I believe that just like mainframe operating systems didn’t transition to PCs, and just like PC operating systems didn’t make the transition to phones, TVs will be powered by a purpose-built operating system optimised for streaming.”
Roku is competing against electronics giants like Apple, Amazon and Google in the streaming device market. According to the global video streaming market report, the market is expected to grow with the CAGR of approximately 18.6% during the forecast period 2016-2023.
It says the “increasing demand for real-time video streaming on social media, increasing smartphone penetration across the globe and increasing demand for OTT solution are the key factors which are adding meaningful growth to the global video streaming market.”
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