1. Roku Is the #1 TV Operating System in North America
With an installed base reaching over 90 million active households—covering around 125 million people—Roku isn’t just a player in the streaming space, it is part of the infrastructure. More than 40% of all TVs sold in the U.S. come with Roku OS baked in, and it holds the top spot in Canada and Mexico too. That kind of distribution power makes Roku the default starting point for a huge chunk of streaming consumption. And yet, this dominance at the “entry point” of the TV experience is still not fully reflected in its valuation or monetization.
2. Engagement Is Exploding—Monetization Is Still Catching Up
In Q4 2024, hours watched on The Roku Channel jumped 82% year-over-year, while revenue grew 25%. That gap says a lot: people are spending way more time on Roku, but the dollars haven’t quite caught up—yet. What’s fueling that engagement? Over 80% of Roku Channel viewing is now driven by AI-powered recommendations on the home screen, not users clicking into apps. That means Roku is increasingly shaping what people watch and what ads they see—kind of like what Google does with search. This level of control is rare—and incredibly valuable in my opinion.
3. Roku Has Multiple Ways to Win
Roku’s monetization strategy isn’t just about ads. It’s built across several revenue streams, all with strong tailwinds. One of them is advertising: From video ads to splashy placements like Roku City sponsorships and deeper DSP integrations, the platform is building a modern ad stack. Its new self-serve Ads Manager also opens the door for small businesses to buy directly. The second one is subscriptions. Roku is turning into a powerful funnel for premium services. With a cleaner UX and better discovery tools, subscription conversions are climbing. Finally, we have data monetization with Roku Data Cloud and attribution tools, the company could eventually become the backbone for targeted CTV advertising.
4. Roku’s Valuation Still Doesn’t Add Up
Right now, Roku trades at just 1.99x sales. Compare that to The Trade Desk at 9.5x or Netflix at 10x. That’s a huge disconnect, especially when Roku offers high-margin platform economics, deep viewer data, and real ad-targeting capabilities. The business is generating free cash flow and expects to hit positive operating income by 2026. As more investors start viewing Roku as a tech platform—not a hardware company—it’s set up for meaningful multiple re-rating.
With an installed base reaching over 90 million active households—covering around 125 million people—Roku isn’t just a player in the streaming space, it is part of the infrastructure. More than 40% of all TVs sold in the U.S. come with Roku OS baked in, and it holds the top spot in Canada and Mexico too. That kind of distribution power makes Roku the default starting point for a huge chunk of streaming consumption. And yet, this dominance at the “entry point” of the TV experience is still not fully reflected in its valuation or monetization.
2. Engagement Is Exploding—Monetization Is Still Catching Up
In Q4 2024, hours watched on The Roku Channel jumped 82% year-over-year, while revenue grew 25%. That gap says a lot: people are spending way more time on Roku, but the dollars haven’t quite caught up—yet. What’s fueling that engagement? Over 80% of Roku Channel viewing is now driven by AI-powered recommendations on the home screen, not users clicking into apps. That means Roku is increasingly shaping what people watch and what ads they see—kind of like what Google does with search. This level of control is rare—and incredibly valuable in my opinion.
3. Roku Has Multiple Ways to Win
Roku’s monetization strategy isn’t just about ads. It’s built across several revenue streams, all with strong tailwinds. One of them is advertising: From video ads to splashy placements like Roku City sponsorships and deeper DSP integrations, the platform is building a modern ad stack. Its new self-serve Ads Manager also opens the door for small businesses to buy directly. The second one is subscriptions. Roku is turning into a powerful funnel for premium services. With a cleaner UX and better discovery tools, subscription conversions are climbing. Finally, we have data monetization with Roku Data Cloud and attribution tools, the company could eventually become the backbone for targeted CTV advertising.
4. Roku’s Valuation Still Doesn’t Add Up
Right now, Roku trades at just 1.99x sales. Compare that to The Trade Desk at 9.5x or Netflix at 10x. That’s a huge disconnect, especially when Roku offers high-margin platform economics, deep viewer data, and real ad-targeting capabilities. The business is generating free cash flow and expects to hit positive operating income by 2026. As more investors start viewing Roku as a tech platform—not a hardware company—it’s set up for meaningful multiple re-rating.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.