One out of five Roku users has canceled or reduced his pay TV subscription, according to the company’s CEO Anthony Wood. Wood stopped by our office this week to showcase Roku’s new line of devices, and he shared some internal research during our interview, revealing that eleven to twelve percent of Roku’s customers have completely canceled their cable. About the same percentage have reduced their pay TV bill. “Roku is a great replacement for traditional pay cable content,” he said. Watch the entire interview below:
So what are all those cord cutters doing with their Roku boxes? It’s no surprise that Netflix (s NFLX) is the most popular Roku channel, but the runner-up is a little unexpected, considering that we’re talking about a video player: it turns out that Roku’s users really, really love Pandora.
Wood said that he was a little skeptical at first about whether users would listen to music on their TVs, but Pandora and other music channels like MOG have proven to be really popular. “It turns out that people don’t have stereos anymore,” he explained. In third place is Amazon’s (s AMZN) Video on Demand, according to Wood, and Revision3 is also in the Top 10.
We also talked about the competitive landscape, which is going to get a lot more interesting with the introduction of Google TV (s GOOG) and Apple TV (s AAPL) later this fall. Wood pointed out that Roku has the advantage of a proven track record that will help it to compete. “We are closing in on a million units sold,” he said.
For more on the Roku product updates, please also check Video: What’s New On the New Roku
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