Roku: My IPO Valuation
Roku is a leading OTT provider going public this Thursday.
The company's business model is currently in transition from selling OTT streaming devices to driving revenue from partnered streaming companies and selling ads.
A closer look at valuation reveals that Roku's IPO offering price is very attractive.
Introduction
Roku, Inc. (ROKU) is an American private company that manufactures and sells home digital media products and operates subscription-based video streaming services and software platform enabling developers to build their channel streams through the distribution of their original content. According to a survey conducted in the first quarter of 2017 by Kantar Millward Brown, Roku operated the number one TV streaming platform in the United States as measured by total hours streamed. As of June 30, 2017, the company had 15.1 million active accounts. Based on a different data set from March 2016, Roku successfully managed to carve out almost half the OTT device market as can be seen in the output below.
Source: https://seekingalpha.com/article/4110221-roku-ipo-valuation
OTT industry rising fast
Looking at the global entertainment and media outlook, the over-the-top content - OTT - industry is on the rise. Last year, PwC's global media outlook 2016-2020 report revealed that unlike other home video entertainment, OTT streaming market share expands at a steady pace. In the United States, which account roughly for the third of the global market, revenues have already successfully passed US$17.2 billion milestone.
The company's business model is currently in transition from selling OTT streaming devices to driving revenue from partnered streaming companies and selling ads.
A closer look at valuation reveals that Roku's IPO offering price is very attractive.
Introduction
Roku, Inc. (ROKU) is an American private company that manufactures and sells home digital media products and operates subscription-based video streaming services and software platform enabling developers to build their channel streams through the distribution of their original content. According to a survey conducted in the first quarter of 2017 by Kantar Millward Brown, Roku operated the number one TV streaming platform in the United States as measured by total hours streamed. As of June 30, 2017, the company had 15.1 million active accounts. Based on a different data set from March 2016, Roku successfully managed to carve out almost half the OTT device market as can be seen in the output below.
Source: https://seekingalpha.com/article/4110221-roku-ipo-valuation
OTT industry rising fast
Looking at the global entertainment and media outlook, the over-the-top content - OTT - industry is on the rise. Last year, PwC's global media outlook 2016-2020 report revealed that unlike other home video entertainment, OTT streaming market share expands at a steady pace. In the United States, which account roughly for the third of the global market, revenues have already successfully passed US$17.2 billion milestone.
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