Roku serves as a gateway to entry varied streaming companies, however now, a report from The Wall Street Journal reveals that the service needs to develop over 50 authentic sequence within the subsequent two years, increasing the unique content material that it already has on its free Roku Channel.
As famous by the WSJ, 155 million individuals have entry to Roku units, and about half tune into the Roku Channel, a hub for ad-supported TV shows, motion pictures, and dwell information. The service added Roku Originals to the Roku Channel earlier this yr, a big portion of which truly come from Quibi, the short-lived streaming service that shut down final yr. Apparently, the set of 50 new shows additionally embody some that the service acquired from Quibi that by no means premiered.
Roku’s push to supply its personal authentic content material possible has one thing to do with boosting advert gross sales on the Roku Channel, as ads are one of Roku’s main sources of revenue. In accordance with the WSJ, Roku sells one hundred pc of its adverts on the Roku Channel, versus promoting simply 30 p.c inside different apps. Except for adverts, Roku rakes in an average of $40.10 / month per user and recorded 56.4 million energetic accounts in its most up-to-date earnings report (PDF). The service additionally makes cash by way of the sale of its Roku TVs and streaming units, incomes a complete of $97.4 million final quarter.
Roku stays tightlipped on its deliberate price range for its new shows, vaguely telling the WSJ that it will likely be near what typical cable shows spend. Nevertheless, sources near the matter knowledgeable the WSJ that the quantity could possibly be anyplace from $250,000 to $750,000 for one unscripted episode or $500,000 to $5 million for scripted episodes. That is considerably decrease when in comparison with authentic content material from different platforms — for reference, Netflix spends round $12 million per episode of Stranger Issues and $13 million per episode of The Crown.
In February of this yr, Roku posted a job listing for a production attorney that helps out with Roku’s “authentic episodic and have size productions,” suggesting that Roku has been planning a dive into the leisure trade for some time. Roku’s first original movie is ready to debut on December 1st, titled Zoey’s Extraordinary Christmas — a by-product of the NBC present Zoey’s Extraordinary Playlist. Because the WSJ notes, Roku also acquired the rights to Children Ruin Everything, a comedy sequence produced by Schitt’s Creek producer Kurt Smeaton, and is planning so as to add it to the platform in 2022.