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Subject:  Re: stocknovice's August portfolio review Date:  9/2/2019  12:50 PM
Author:  PaulWBryant Number:  59228 of 61614

Darth: Respectfully that should be obvious. Billions of ad impressions. What else are you going to watch you tube on. A phone? To stream it on the TV you make a deal with ROKU and Amazon, etc.

Haha. Saying "respectfully" doesn't magically make a condescending statement respectful.

And yes, a phone! I'm sure countless people consume YouTube that way. Yes, streaming through Roku or Fire is a common way to watch Youtube on a television, but I'm suggesting that Roku and Fire benefit more from this than YouTube does.

Darth: And ROKU is pulling away from FireTV so they have either a better product or a better strategy or both.

That's wrong, according to this, because it's FireTV that has more eyeballs:

hmcproperties, that was a great list. You kind of broke it down to hardware, subscriptions, commissions, and advertising. Leaving hardware aside since it's not a path to great profits, I would imagine the lion-share of their platform revenue comes from advertising, but as I said, it would be really nice to have a breakdown. Within advertising, your points here seem like the key ones. I'd guess 90% of Roku's revenue comes from:

8. Advertising: Roku makes money when Roku sells the ad inventory it gets from all ad-supported publishers (including YouTube). Roku gets ad inventory from publishers in lieu of taking a cut of each publisher run add because Roku feels that it is too hard to track and monitor. Roku prefers to just take ad inventory in exchange for the extended audience reach Roku provides.

9. Advertising: Roku makes money on when selling Roku's own add inventory on Roku's own channel; The Roku Channel.

It's extremely hard to understand how they somehow make $21/year per user and rising. Sure, as Darth said, "billions of ad impressions." But for the impressions from #8 above, shouldn't almost all the revenue go to Netflix, Youtube, HBO, etc?

I would guess #9 is a tiny amount, but I don't know for sure. Have they said how many of the 9.4 billion hours watched last quarter were on their "Roku Channel?"

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