For anybody who is interested, I collected some key operational performance metrics on ROKU for QOQ comparison.
What these metrics indicate is slowing active account growth and streaming hours. Not good. But ARPU growth is accelerating, meaning the company is monetizing exceptionally well. In the US, 38% of smart TVs include ROKU. ROKU and AMZN appear to be losing international market share particularly to the Korean smart TV manufacturers. This makes sense since the Koreans want to ship their own smart TVOS and monetize it like the ROKU model. The margins on TVs suck. ROKU has been aggressive entering markets in UK, Brazil, Mexico, Canada, Germany, Korea, and Taiwan amongst others. I don’t see ROKU breaking out international numbers so it is hard to find a metrics on this. But clearly competition is coming on strong.
Metrics Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Active Accts 40 43 46 51 53.5 55 ARPU $ 24 25 27 28.76 32.14 36.46 Stream Hrs (B) 12.3 14.6 14.8 17 16.4 17.4 Percent Growth QOQ Active Accts 7% 7% 10% 5% 3% ARPU $ 4% 7% 6% 11% 12% Stream Hrs (B) 16% 1% 13% -4% 6%
Market share (posted on nexttv.com):According to the latest data released by Conviva, Roku saw a 3% drop in global connected TV “big screen” usage in the first quarter of 2021 vs. Q1 2020, and now stands at 30% of the worldwide market. Amazon Fire TV has slipped from 22% to 19% over that same span.
Conversely, Korean smart TV markers Samsung and LG have seen increased usage in fast-emerging streaming markets—Samsung’s OS market share is up 3 points to 12% in the latest Conviva study, while LG’s usage grew from 4% to 6%.
Also notable: Google’s Android TV usage grew from 2% share to 5%.
My notes from March 2020: Market share: ROKU 59%, AMZN 19, Chromecast 4, LG 4, Samsung 4
Reviews of the ROKU TVOS are still the best for streaming. Samsung’s Tizen is a Linux-based open source that has been long poopoo’ed for a bad user interface. It has been improved and Samsung claims it was shipped on 190M smart TVs. Further, it supports a large suite of apps. So this makes me wonder if ROKU will bring on additional apps more than just streaming apps (think gaming)
The bottom line here is that this smart TV marketplace is changing very quickly and the 800 pound gorillas are moving. And ROKU is feeling the pressure. ROKU has first mover advantage, but can it stay ahead of the pack of wolves.