Google Is About to Give Roku More to Worry About
Google Chromecast with Google TV (CGTV) is Alphabet's (NASDAQ: GOOGL) (NASDAQ: GOOG) smart TV product that lets users control and launch streaming apps from a single hub. It also ties in with Google Assistant, allowing users to quickly launch shows and ask for suggestions via the voice-controlled remote. According to several reports, Google plans to expand the device's functionality even further by adding 50 free-to-watch channels -- a move that is likely to put it in firmer competition with Roku (NASDAQ: ROKU).
With 61.3 million active users, Roku operates one of the most popular streaming platforms in the world, with a large part of its revenue coming from its free ad-supported streaming TV (FAST) service, The Roku Channel. It's a feature where owners of Roku streaming devices and Roku-equipped TV sets can catch classic shows, movies, and live news broadcasts across more than 270 channels -- all supported by marketing messages. Roku claims its FAST offering reaches more than 80 million U.S. households.
FAST has proven such a popular enterprise for Roku that it accounts for more of the company's revenue than hardware sales. Roku reported net revenue of $764 million in the second quarter, of which $673 million came from its platform business, which oversees its FAST operations. However, Roku has voiced caution about the near-term future.
Source Fool.com
