$ROKU What @Roku CEO Anthony Wood is doing with @TheRokuChannel is a display of some of the highest business acumen in practice that media has seen in a generation.
It's absolutely next level and still a decade ahead of the rest.
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$ROKU
... This has thrust Roku into an unprecedented opportunity.
First...
Since it's all AVOD, he uses content acquisition cost precisely. It's not a 'well, gosh, a big movie with big stars probably gets us subscribers."
...
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$ROKU
The revenue estimate measure is exact. "This many impressions at this CPM results in precisely this revenue."
The estimates may be off, but it's not a moving target. "This content is worth this much, exactly, and this is how we have decided that value."
...
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$ROKU
This is basically using Goolge and Facebook ad precision for ROI on his own platform.
This is the opposite of Netflix, HBO, Disney, etc, where they have to pluck an estimate out of the air with nearly impossible ROI metrics.
Second...
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$ROKU
It creates business diversification. TRC is available on non Roku devices. The proliferation of the OS is the bullish thesis, no two ways about it, but at least there is a 'something' to reap rewards of booming OTT usage without just the OS.
Third...
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$ROKU
It's a launching point for other services for which Roku receives revenue share.
(Sign up for X service, recurring commission to Roku. This is the 'software as a platform' business; like Shopify, but, ya know, we can't quite go so far as to call Roku, Shopify.)
...
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$ROKU
Fourth...
If TRC gets large enough w content and usage, it can become YouTube of streaming. Tons of content, all free, advertisements are expected, available anywhere. Again, would be silly to compare the scale, Roku is not YouTube, but the strategy is similar.
...
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$ROKU
Fifth...
First party data is king. Google and Facebook own this world on the web.
All others will sink or swim on their own first party data quality.
Roku has both the OS platform and now TRC with 70M+ viewers worldwide, all with a Roku account.
...
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$ROKU
This is the new Internet.
'Streaming TV' or 'OTT' are not complete descriptors. It is, for the first time, appropriately called Internet TV. The other uses of that phrase are not true to the ethos and scale.
* Revenue: $63.6M vs analyst estimates of 62.0M
* EPS: -$0.08 vs -$0.09
Full Year Guidance:
* Revenue: $269.5M vs analyst estimates of 267.69M
* EPS: -$0.39 vs -$0.399
$PD
* Customers with annual recurring revenue over $1,000,000, up 55% year-over-year
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$PD
Net cash provided by operations was $1.6 million, or 2.5% of revenue, compared to net cash used in operating activities of $0.2 million, or negative 0.4% of revenue,
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* The long run is just a collection of short runs you have to put up with.
* Long term is harder than most people imagine, which is why it’s more lucrative than many people assume. Everything worthwhile has a price, and the prices aren’t always obvious.
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* Saying you have a 10-year time horizon doesn’t exempt you from all the nonsense that happens during the next 10 years. Everyone has to experience the recessions, the bear markets, the meltdowns, the surprises and the memes at the same time.
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In November 2020, Richemont and Chinese e-commerce giant Alibaba invested $1.1 billion in Farfetch, a London-based online fashion retailer.
...
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The three groups are partners on a “Luxury New Retail” model that allows Richemont to sell directly to consumers through Alibaba’s popular e-commerce platforms.
I have had a standing belief that Fastly’s technology, based on architectural decisions, is the best in the world in the space of global programmable networks and edge compute (I feel the same way about CDN, but that’s a different subject).
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I believe that architecture makes it the only truly scalable programmable network and I think that the largest enterprises in the world are starting to catch on (and thus Fastly is so dominated with enterprise business).
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I spoke with the head of product just to educate myself, which is to say it’s all out there, but I’m not good enough to grasp it all without help.
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