The CEO Of Roku Explains Why Media Companies Aren't A Threat

Loading...
Loading...

Investors working under the assumption traditional media giants are the biggest threat to Roku Inc ROKU may want to reconsider their thesis.

Cord Cutting Trend

Streaming video is more popular than ever with 1 million people cutting their cable cord last quarter alone, Roku CEO Anthony Wood told CNBC's Jim Cramer Wednesday evening. Consumers opting against a cable subscription package tend to do so because of the high cost while streaming options offers more choices.

"One of the things about Roku, we have succeeded by building a great user interface, making it super easy to use," he said. "And for regular Americans, it's an easy way to watch TV."

Partner, Not Frenemy

The entrance of a media giant into the streaming video space shouldn't have investors worried.

Comcast Corporation CMCSA's Xfinity Flex streaming service, for example, was made available to internet customers for just $5 a month. Wood said Comcast happens to be an "important partner" as it advertises on the Roku platform and the Xfinity app is available on Roku. Similarly, Apple Inc. AAPL and Walt Disney Co DIS already said they expect their respective streaming platforms to be made available on Roku.

"We're a great partner," Wood told Cramer. "We can really help those companies build scale if they want to use some of the marketing techniques we have on our platform."

Roku's stock traded around $83.89 per share at time of publication. The stock is up more than 170 percent year to date.

Related Links:

Roku's Q1 Inspires 23% Stock Pop, Higher Price Targets Across The Board

Citi Downgrades Roku To Sell On Increased Competition, Valuation

Photo courtesy of Roku.

Loading...
Loading...
Market News and Data brought to you by Benzinga APIs
Posted In: TechMediaAnthony WoodCNBCJim Cramerstreaming video
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...