O.n Wednesday, Roku (NASDAQ: ROKU) has announced that it has reached an agreement with WarnerMedia at AT & T to bring HBO Max to its platform. Following the news, Roku shares rose 2% on Wednesday and are up more than 4% after hours today. AT&T beat HBO Max in May in response to Netflix, but it was clearly not from both Roku and Amazon Fire TV.
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Roku’s brand-agnostic platform relies heavily on advertising and membership revenue, so the more viewers it can attract with new services, such as HBO Max, the more revenue from advertising. With the agreement, Roku users will have access to another streaming service that could improve retention rates while attracting additional customers to the platform. Furthermore, the more users the platform has, the more likely it is to be able to sign more contracts with other media channels and streaming services.
In September, NBCUniversal’s streaming app, ‘Peacock’, entered the Roku platform after reaching an agreement that included advertising as a mainstay. Signing up for more TV channels and membership services is a great way for Roku to grow and his plan seems to be moving forward. Scott Rosenberg, senior vice president of Roku, explained, “Reaching mutually beneficial agreements where Roku grows with our partners is how we provide a unique user experience at an incredible value to our customers. practice. ”
What will HBO Max get from the deal?
Last week, AT&T CEO John Stankey confirmed HBO Max has 12.6 million users, which will stop compared to Netflix’s 195.15 million users and Disney +’s 86.8 million subscribers . Thus, the deal could boost HBO Max users by giving it a wider distribution, as Roku now has more than 46 million active accounts. WarnerMedia said in a press release that more hours of TV are streamed from Roku devices than any other platform, meaning HBO Max delivers its service to a large audience.
To attract those potential new users, WarnerMedia has announced that it is bringing a lot of new content to HBO Max. The company plans to release their 17 films for 2021 on HBO Max the same day they appear in theaters. The upcoming cinema, ‘Wonder Woman 1984’, will be available on the streaming service for Roku owners on Christmas Day. HBO Max was said to be motivated to get an agreement with Roku as soon as possible to ensure that the blockbuster hit would be available for streaming on the popular platform.
The streaming platform has had a good year and investors have enjoyed the latest Q3 results due to the popularity of the platform. The company increased its active user accounts to 46 million, up 43% annually (YoY), and revenue rose 73% to $ 319 million. While Roku still faces higher competition from Google, Amazon, and Apple, it separates from the package by focusing on hardware sales and advertising instead of membership fees as the tech giants do. doing.
Roku stock is expected to rise
Shares of the provider have flowed up 137% year to date by sending millions of users due to the pandemic as people turned to Roku for entertainment.
HBO Max ‘s contract for Roku is good news because it has now concluded about one major streaming service that it needed. Now with the major TV channels available on its platform, its stock is likely to continue to rise as it becomes a top choice for people who are black out their traditional cable packages for connected TV platform, Roku.
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