Roku Expands Originals Lineup with Fresh Quibi Content, Solidifying Streaming Position
Roku is bolstering its free, ad-supported streaming platform, The Roku Channel, with a significant influx of new content acquired from the defunct short-form video service Quibi. The company announced on Monday that it will be adding 23 new Quibi titles to its "Roku Originals" lineup, including four brand-new premieres never before seen. This expansion, set to launch on August 13th, aims to further solidify The Roku Channel’s position as a leading player in the increasingly competitive streaming landscape.
The addition of these new shows, which will be available to stream in the U.S., Canada, and the UK, represents a strategic move to attract a wider audience and enhance engagement on the platform. It builds upon Roku’s initial acquisition of 30 Quibi-produced shows back in May, signaling a continued commitment to leveraging the content library of the short-lived service.
Among the exciting new additions are several eye-catching titles that promise to deliver unique and engaging viewing experiences. "Eye Candy," a game show hosted by the acclaimed singer and actor Josh Groban, will see celebrities teaming up with everyday people to tackle the challenge of identifying hyperrealistic desserts. The quirky and comedic premise is expected to draw viewers in with its blend of celebrity appeal and culinary intrigue.
Another noteworthy addition is "Squeaky Clean," described as a "first of its kind cleaning competition hosted by Leslie Jordan." The show promises to inject humor and entertainment into the often-mundane world of cleaning, offering viewers a lighthearted and engaging competition format. Given the popularity of home improvement and lifestyle content, "Squeaky Clean" has the potential to attract a broad audience.
Adding an element of intrigue, Roku is also adding something called "Skrrt With Offset." While the exact nature of the show remains shrouded in mystery, the title suggests a potential focus on car culture, music, or perhaps a combination of both. The involvement of the popular rapper Offset adds to the show’s appeal and hints at a potentially younger demographic target.
These new additions are strategically aligned with Roku’s ad-driven content strategy. The company licenses content from various media companies and generates revenue by selling advertising against it. This model has proven successful for Roku, allowing it to offer a diverse range of content to its users while maintaining a free, accessible platform.
Since its launch in May, Roku Originals have already made a significant impact on The Roku Channel’s performance. The company reported that Roku Originals accounted for all five of the top streaming content slots on The Roku Channel this summer, as measured by active Roku accounts. This impressive performance underscores the effectiveness of Roku’s content acquisition strategy and the growing appeal of its original programming.
Brian Tannenbaum, Roku’s head of alternative programming, expressed enthusiasm about the continued expansion of Roku Originals, stating, "While it’s only been a few months since the launch of Roku Originals, the response has been overwhelming. We’re excited to keep the drumbeat of premium series, featuring Hollywood’s top talent, available only on the Roku Channel with this next slate of original programming."
Analysts at Needham have also weighed in on Roku’s strategy, highlighting the importance of content differentiation in the increasingly competitive streaming market. In a note last week, they wrote that The Roku Channel "continues to broaden its reach by growing niches," and that the new content buys "…should serve as a strong moat of product differentiation that may well lead to superior pricing power for Roku over time."
The analysts further emphasized the virtuous cycle that Roku has created with its Roku Originals strategy. "Total streaming hours doubled at [The Roku Channel] in 2Q21, driven by its flywheel of creating new Roku originals, which leads to more viewing hours, which attracts new advertisers, which drives higher ad revs, which Roku invests into new original content, etc." This positive feedback loop suggests that Roku is well-positioned to continue its growth and success in the streaming market.
The increasing popularity of The Roku Channel is further evidenced by its strong performance in Nielsen’s streaming ratings. According to the June rankings, The Roku Channel was the No. 6 streaming channel by household reach in the U.S., placing it among the top players in the industry. It came in behind streaming giants such as Disney+, Hulu, Amazon, YouTube, and Netflix, demonstrating its ability to compete with established platforms and capture a significant share of the streaming audience.
The expansion of Roku Originals with the addition of these new Quibi titles represents a significant step in Roku’s ongoing efforts to solidify its position in the streaming landscape. By strategically acquiring content, focusing on original programming, and leveraging its ad-supported model, Roku is successfully attracting viewers and advertisers alike. The company’s continued growth and success suggest that it is well-positioned to thrive in the ever-evolving world of streaming entertainment. This new content will undoubtedly continue to drive Roku’s flywheel of success, leading to further expansion and innovation in the future. The Roku channel is steadily becoming a major player in the streaming wars, and its growth trajectory looks promising. The strategy to revitalize Quibi content into easily accessible Roku originals is clever and cost-effective. It allows Roku to obtain relatively inexpensive content, thus cutting into margins and boosting revenue, leading to more original content in the future. The future looks bright for Roku.
