""It's very clear to me that AI is going to reduce the cost of content significantly over time," Roku CEO Anthony Wood told investors during the company's fourth quarter earnings call on Thursday. "As long-form content costs come down, that's going to grow engagement on our platform," Wood said. "And we monetize engagement - basically, our business model is monetizing engagement.""
"Platform revenue, which includes advertising and rev shares from streaming service distribution, grew 18% last year to $4.1 billion, including 18% growth in Q4. Streaming hours on Roku's platform hit 145.6 billion hours last year, up 15% year over year, and The Roku Channel was the second most popular free ad-supported streaming app, according to Nielsen's Gauge report in December. (YouTube was No. 1, natch.)"
"On the consumer side, Roku is using AI to improve recommendations, highlight trending content and adjust how shows and apps are arranged on the home screen. It's also using AI to automatically generate "why to watch" blurbs on content detail pages that go beyond basic plot summaries. , its built-in voice assistant, is also getting an AI assist so that people can ask more conversational questions and get contextual answers directly on their TV screens."
AI is expected to significantly reduce content production costs over time, particularly for long-form content, which should increase viewer engagement. Greater engagement on the Roku platform drives monetization through advertising and revenue shares. Platform revenue grew 18% to $4.1 billion last year while streaming hours reached 145.6 billion, up 15% year over year, and The Roku Channel ranked second among free ad-supported streaming apps. Roku is deploying AI to improve recommendations, surface trending content, rearrange home screens, generate "why to watch" blurbs, and add conversational, contextual capabilities to its built-in voice assistant.
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