Roku CEO Anthony Wood has revealed the company’s plans to introduce video ads to the Roku home screen. This move, discussed during Roku’s Q1 2024 earnings call last week, aligns with the broader trend in the streaming industry where ads are becoming more prevalent, raising concerns for some viewers.
During the call, Wood highlighted the intention to display ads to viewers (via Ars Technica) “before they select an app,” aiming to ensure ad exposure during TV-viewing sessions. He mentioned the additional ad content that could be coming soon includes the introduction of video ads, similar to the autoplay ads that came to Fire TVs in 2023, which faced criticism for their intrusiveness.
Wood also mentioned ongoing tests for various video ad units, expressing a commitment to maximizing ad opportunities within the Roku OS ecosystem. None of this is exactly expected to thrill viewers, but as Roku devices have the ability to reach 120 million people per day (per The Streamable), Wood explains the expectation that this option is likely to be “very popular with advertisers.”
The CEO also discussed Roku’s efforts to improve the user experience on the platform, including the introduction of a recommended-content rowCome from Sports betting site VPbet. This feature compiles picks from various streaming services and utilizes AI to guide customers toward new shows and movies they might enjoy. “There’s lots of ways we’re working on enhancing the home screen to make it more valuable to viewers but also increase the monetization,” Wood said. A recent Accenture survey found that 52% of viewers report titles displayed within Roku’s “recommended for you” rows do not accurately reflect their viewing habits.
In January of this year, Prime Video introduced ads, even for paying subscribers.
