Game On Pause? Roku Wants To Fill That Gap With Ads, New Patent Shows
Portfolio Pulse from Franca Quarneti
Roku Inc (NASDAQ:ROKU) has patented a technology to display ads during pauses in movies or games on TVs, aiming to monetize idle screen time. This expands their ad space beyond the Roku City screensaver, potentially inserting ads into third-party content via HDMI. The system is designed to activate only during pauses to minimize user disruption. Roku's move follows a year where it reported a $40 million loss on hardware but earned $1.6 billion from ads and services.
April 05, 2024 | 6:09 pm
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Roku Inc's new patent for displaying ads during TV pauses could open new revenue streams, following a year with significant ad revenue but hardware losses.
Roku's patent for ad displays during TV pauses represents a strategic move to enhance its revenue streams, especially considering the company's significant earnings from advertisements compared to losses in hardware sales. This innovation could attract more advertisers by leveraging unused screen time, potentially increasing Roku's ad revenue. However, user reception and regulatory considerations will play crucial roles in the actual impact on Roku's financial performance.
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