U.S. markets open in 1 hour 42 minutes
  • S&P Futures

    3,846.25
    +37.00 (+0.97%)
     
  • Dow Futures

    31,193.00
    +281.00 (+0.91%)
     
  • Nasdaq Futures

    13,052.75
    +141.75 (+1.10%)
     
  • Russell 2000 Futures

    2,237.90
    +38.70 (+1.76%)
     
  • Crude Oil

    62.08
    +0.58 (+0.94%)
     
  • Gold

    1,738.00
    +9.20 (+0.53%)
     
  • Silver

    26.89
    +0.45 (+1.70%)
     
  • EUR/USD

    1.2053
    -0.0035 (-0.29%)
     
  • 10-Yr Bond

    1.4600
    0.0000 (0.00%)
     
  • Vix

    25.26
    -3.63 (-12.56%)
     
  • GBP/USD

    1.3936
    +0.0013 (+0.10%)
     
  • USD/JPY

    106.7210
    +0.2190 (+0.21%)
     
  • BTC-USD

    47,842.73
    +2,340.92 (+5.14%)
     
  • CMC Crypto 200

    961.51
    +28.37 (+3.04%)
     
  • FTSE 100

    6,561.92
    +78.49 (+1.21%)
     
  • Nikkei 225

    29,663.50
    +697.49 (+2.41%)
     

Is Roku Pushing Into Original Content?

  • Oops!
    Something went wrong.
    Please try again later.
Chris Katje
·2 min read
  • Oops!
    Something went wrong.
    Please try again later.

Streaming media content provider Roku Inc (NASDAQ: ROKU) could be pushing from being a provider of streaming apps and advertising to a player in the original content production.

What Happened: A new job listing from Roku could preview the company’s entry into original content on shows and movies, according to Protocol report earlier this week.

The job listing is looking for a lead production attorney to build out an “expanding slate of original content” for Roku. A hired person would work on option purchase agreements, script acquisition agreements, and hiring of actors, writers and directors.

The job listing comes after Roku completed a purchase of the library of content from Quibi.

Related Link: Super Bowl LV TV Ratings Hits 13 Year Low, Sets Streaming Record

Why It’s Important: The listing from Roku would put the company in more direct competition with streaming services from Walt Disney Co (NYSE: DIS), Hulu, Netflix Inc (NASDAQ: NFLX) and others.

An important note from The Verge points out that Roku could benefit from both people watching Roku content on the streaming devices and watching competitor’s products on a Roku box.

"That convenient customer experience remains important, even if Roku occasionally butts heads with streaming providers,” the site says.

The Roku Channel is a free advertising-supported streaming service from the company and could be the center of the original content push. The channel has helped boost the company’s advertising revenue and could be a key for growth going forward.

What's Next: The timing of the original content launch could be key as Morgan Stanley analyst Ben Swinburne calls for Roku’s growth peaking in the second quarter of fiscal 2021. The analyst has a price target of $275 and an Underweight rating.

The majority of Roku’s earnings will come from publishers, according to Swinburne. If Roku can compete in the original content space, analysts could have to take a deeper look at how to value the company going forward.

ROKU Price Action: Shares of Roku closed Thursday at $452.99.

Latest Ratings for ROKU

Feb 2021

Truist Securities

Maintains

Hold

Feb 2021

Morgan Stanley

Maintains

Underweight

Jan 2021

B of A Securities

Maintains

Buy

View More Analyst Ratings for ROKU
View the Latest Analyst Ratings

See more from Benzinga

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.