Roku's isn't just a hardware company anymore — CEO Anthony Wood explains why ads are its future (ROKU)

Roku’s first-quarter earnings report Tuesday highlighted a big shift in the company’s business. It’s now gaining more revenue from its platform business — which is primarily comprised of advertising sales — than from the digital media players that made it famous. In an interview with Business Insider, CEO Anthony Wood said investors should expect advertising to only get more important for the company. Roku made a name for itself with its low-cost, easy-to-use streaming video players, but its future, according to CEO Anthony Wood, is in advertising. Investors got a sense of what that future could look like on Wednesday, when the company reported its first-quarter results. For the first quarter ever, the company gained more revenue from from its platform business — which primarily consists of ad sales, but also includes commissions the company gets on the sale of subscriptions and videos through its platform and fees from licensing its software — than from selling its video players. Expect Roku’s ad business to become only more important to the newly-public company in the future. Consumers are increasingly shifting their viewing habits away from broadcast, cable, and satellite TV toward streaming video, Wood said. As they do, advertisers will follow.…

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