Over-the-top (OTT) streaming platforms are booming, with adoption having surged due to global isolation measures over the last few months. However, with a growing number of media players entering the OTT space, competition remains as cut-throat as ever. Those services will have to find ways to innovate and ensure access to as many homes as possible.
Roku, a streaming media company with its own proprietary TV operating system (OS), is one of the leaders in the space. Roku has partnered with numerous OTT streaming services to help them reach millions of people across the globe. Here’s why the media landscape is primed for the expansion of Roku’s technology, and why consumers love its simple yet effective user experience.
OTT is taking over
The number of households choosing to watch content via OTT instead through a pay TV service is growing. In fact, the number of pay TV subscription cancellations was expected to grow from 39.3 million in 2019 to 55.1 million this year.
In the meantime, OTT services have only increased further due to the COVID-19 crisis, accelerating the pace of the path they were already on. With more free hours in the day during lockdown, millions of viewers across the world turned to streaming platforms to stay entertained. In fact, Netflix alone experienced a surge of a record 16 million subscribers in Q1 of this year.
With new players like Disney+, AppleTV+, NBC Universal’s Peacock and HBO Max entering the space and offering top-notch content to compete with the likes of Amazon Prime and Netflix, it’s tougher than ever for streaming services to rise above the rest and acquire those all-important viewers.
Here’s where Roku comes in. The company is facilitating this shift to OTT that’s taking place in homes, acting as a natural next step for services that want to offer an easy viewing solution to consumers.
Consumers seek the simplicity that Roku delivers
As OTT grows in the years ahead, consumers need an Operating System in their TV, or otherwise easily integratable. In fact, in February of 2020, Nielsen found that 19% of the time that consumers in OTT-capable homes are spending on TV is going to streaming -- up from 10% in 2018.
This is where Roku holds huge value. By offering simple-to-use streaming players and TVs with its proprietary Roku OS, Roku simplifies OTT access for consumers. Consumers only have to purchase one single device -- be it a streaming stick or a TV -- to watch content from all of their favorite streaming services.
In addition to subscription OTT services, Roku also supports ad-supported content, which it predicts will unlock enormous value for customers. During the pandemic, consumption of ad-supported video on demand (AVOD) content streamed on Roku’s platform grew faster than overall platform growth. With the choice of both ad-based and subscription-based content at their fingertips, viewers are presented with a newfound level of choice, allowing them to watch the movies and shows they like on their own terms.
OTT services can reach millions with the help of Roku
Roku estimates that it has so far reached 100 million people, and having been a hit in the US market, is now investing in international growth. The company is now working with more than 15 TV brands globally, bringing Roku TVs to consumers around the world.
Since isolation measures began, Roku saw an acceleration in account activations and streaming hours, on both ad-based and subscription-based programming. The platform added 2.9 million incremental active accounts in Q1 2020 to reach 39.8 million, and streaming time increased by 1.6 billion hours over the same period to a record 13.2 billion. And while sales of Roku devices and hours of content watched may have surged due to isolation measures, the company expected to see a steady growth of usage even after shelter-in-place restrictions are lifted.
Roku can help OTT service with user acquisition through targeted on-device promotional tools, helping publishers growing an engaged audience.
With the help of an expert partner that’s experienced in developing Roku channels, OTT providers can integrate their services into Roku’s streaming platform in a matter of months. It just so happens that that expert partner is us. Don’t hesitate to reach out via email or social to see how intive can help you leverage Roku to its full potential.