Roku generated $190 million in revenue in 2013, according to a report from The Information, which got Roku CEO Anthony Wood to reveal some of the company’s numbers. Wood also told The Information that Roku plans to make more money with services than through hardware sales within the next 12 to 18 months.
[company]Roku[/company] announced in early 2013 that it was close to selling 5 million players in the U.S., and in early 2014 that it had sold close to eight million players in the U.S., suggesting that it sold around three million devices in the U.S. in 2013. Roku also partnered with Sky in the U.K. to sell Now TV-branded players to Sky’s customers, and sells its hardware in Canada, the U.K. and Ireland.
Roku executives have long said that services are the fastest growing part of the company’s business, and Wood told The Information that the services business has a 95 percent gross margin for the company.
However, as Roku moves to make more money with services, it faces some issues with publishers, not all of which were prepared to share their revenue with the company. Stephen Shannon, Roku’s general manager and senior vice president of content and services, told me last week that the company seeks commercial deals “any time a business is becoming more material on revenue.” One of the issues publishers have been complaining about is the lack of transparency of this process, something the company plans to address in the near future, according to Shannon.