Media and tech firms keep entering the platform revenue business.
As Variety Intelligence Platform’s exclusive subscriber report “Connected TV Competition” details, a combination of advertising and a share of subscriptions made to streaming services are presenting rich new revenue streams for companies in the connected TV and device space, including Roku, Google, Apple, Amazon, Samsung and many more.
Roku is an excellent case study of why there is so much attention currently being paid to the connected TV space. The company has seen quarterly revenues from platform revenue increase from $75.1M in Q1 2018 to $582.5M in Q3 2021, an increase of $507.4M (+676%).
Most of this is driven from the cut Roku takes from subscriptions made on its devices and TVs running the Roku operating system, with the share from advertising on free streaming services estimated by VIP+ as being significantly less.
VIP+ partnered with the strategy team at marketing agency Trailer Park Group to assess consumer sentiment regarding which companies are positioned to succeed in this space.
