Roku continues to expand its reach and solidify its position as a leader in the streaming industry. Its Q4 2022 financial results show impressive growth in key areas. Total net revenue increased by 13% YoY to $3.1 billion, while platform revenue grew 20% YoY to $2.7 billion. Gross profit also saw a 2% YoY increase to $1.4 billion. The number of Active Accounts on the Roku platform reached 70.0 million, representing a net increase of 9.9 million active accounts from the previous year. Additionally, users streamed 14.3 billion more hours in 2022 than in 2021, bringing the total to 87.4 billion streaming hours. Average Revenue Per User (ARPU) also grew by 2% YoY, reaching $41.68 on a trailing 12-month basis. Finally, in Q4 2022, The Roku Channel reached U.S. households with an estimated 100 million people.
The company had recently announced its Roku Series TVs to complement its existing licensing of the Roku TV OS to TV manufacturers. The Roku Select and Plus Series TVs will be available in the U.S. in spring 2023 with retail prices ranging from $119 to $999 for the full lineup of 24” – 75” models. Most importantly, the branded TVs will help Roku in rolling out and testing hardware and software directly with consumers, strengthening all TVs powered by Roku OS.
| Region | News |
| US | TCL Roku TV 6-Series won CNET Editor’s Choice award and was named “best TV for the money” for the fifth year in a row. |
| Canada | Extended Walmart partnership with onn. Roku TV models. |
| Mexico | Added three new Roku TV licensees for a total of 12 partners that now offer a broad lineup of Roku TV models. |
| Brazil | AOC launched a new lineup of 4K Roku TV models, and Semp TCL launched six new Roku TV models. |
| UK | RCA entered the market with new Roku TV models, and TCL launched the U.K.’s first-ever QLED Roku TV model. |
| Germany | Expanded Roku TV program with TCL and Metz. |
| Australia | Expanded Roku TV program with TCL. |
The OS Shapes New Battle Lines for TVs
The TV OS landscape is beginning to take shape quite nicely with 5 major players: Roku, LG, Samsung, Google, and Amazon. If you take a look at their offerings, you don’t really see that much to differentiate one from the other. Obviously, LG and Samsung already have a significant installed base and are their own best OEM partners. But, Google’s Android has massive reach, and Amazon can sell anything to anyone at any time.
| OS | Developer | User Interface | App Store | Gaming Support | Other Features |
| Roku OS | Roku | Simple and easy to use, customizable home screen | Roku Channel Store with over 5,000 apps and channels | Limited gaming support | Voice control, Private listening, Hotel and dorm connect, Mobile app remote, Screen mirroring, 4K and HDR support |
| webOS | LG | Sleek and modern interface with quick access to apps | LG Content Store with a wide range of apps and services | Limited gaming support | Voice control, Magic Remote, Multi-view, Mobile app control, 4K and HDR support, LG ThinQ AI |
| Android TV | Customizable home screen and Google Assistant integration | Google Play Store with over 7,000 apps and games | Extensive gaming support with Google Stadia and Play Pass | Voice control, Chromecast support, Picture-in-picture, Live TV integration, 4K and HDR support, Multi-device integration | |
| Fire TV OS | Amazon | User-friendly interface with Alexa integration | Amazon Appstore with over 500,000 apps and games | Extensive gaming support with Amazon Luna | Voice control, Alexa skills, Personalized recommendations, Live TV integration, 4K and HDR support, Multi-device integration |
| Tizen OS | Samsung | Clean and customizable interface with quick access | Samsung Smart TV Store with a variety of apps and services | Limited gaming support | Voice control, Bixby integration, Universal guide, Mobile app control, 4K and HDR support, SmartThings integration |
| Nvidia Shield | Nvidia | Modern and intuitive interface with access to Google Assistant and GeForce Now | Google Play Store with over 7,000 apps and games | Extensive gaming support with GeForce Now and GameStream | Voice control, Chromecast support, Picture-in-picture, 4K and HDR support, Smart home integration |
So, it’s going to boil down to a few things going forward: the integration into the smart home – Google and Amazon are pretty well positioned there. Then there’s the streaming gaming market where Amazon has its own service (Luna), Google recently stopped its service (Stadia), and Samsung has its Game Hub, which is supposed to have everyone. You can probably thrown in there something about the app universe and what will be accessible on each platform which tends to favor Google. However, ultimately, this is about TVs so, it’s probably going to come down to how the number of channels and the variety of content available, maybe even who has the better user experience and/or remote. Roku has been around for a while and it has not, mercifully, changed that much over the years because it works. It’s probably the only one of the operating systems on this page that is a pure TV play from day one.
Maybe being a pure TV play will hurt Roku, but I am not sure about that. What will be interesting is to see if Roku can take some of its STB expertise and work it into the hardware on its branded TVs to come up with a truly integrated platform for other TV manufacturers. Full disclosure, I am a long standing Roku user, and have never found other devices from Amazon, Google, and even Apple, to really do anything to dissuade me from switching. Roku was, for a long time, a very US-centric brand, but if it continues on the path it is on, it is going to be a thorn in the side of LG and Samsung, and help a lot of their competitors.
