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Roku Now Top Smart TV OS, Gaining Share From ‘Homegrown’ Solutions, Says CEO

One in three smart TVs sold in the U.S. in Q1 had a Roku operating system, up from one in four in Q1 a year earlier, said CEO Anthony Wood on a Wednesday evening earnings call. That's a "pretty big…

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increase," he said. Roku is “now the No. 1 smart TV OS in the country,” he said. It's taking share away from TV makers that go to market with their own “homegrown solutions,” he said. TV OEMs “that are not licensing Roku TV are almost all losing in market share and Roku’s OEMs are gaining in market share,” he said. The new Apple and Disney streaming service launches (see 1905090001) “are absolutely positive for Roku and we are excited to bring them to our users,” said Wood. “With 29 million active accounts and some very effective audience development tools, we are an increasingly important partner for these kinds of services that are trying to reach viewers, build audience, increase engagement.” The service launches also “drive interest in streaming,” he said. “It drives more cord cutters, it just propels the whole industry generally.” Content companies like Disney that launch streaming services are “absolutely not competitors” of Roku’s, said Wood. “They are direct-to-consumer services, but they need a platform like Roku to reach consumers in the living room on TVs, and we’re a great platform for doing that.” They’re “important partners for us and we’re important partners for them,” he said. Roku's 74 percent increase in Q1 streaming hours from a year earlier to 8.9 billion and 51 percent revenue increase to $206.7 million sent the stock soaring 28 percent higher Thursday to close at $83.17.