What happened
Shares of Roku (ROKU 5.77%) jumped on Tuesday, rising 10.8% on the day.
The stock's gain followed news that Apple's (AAPL 2.55%) Apple TV app is now available on the Roku platform. In addition, Roku said its users will be able to subscribe to the upcoming streaming service Apple TV+.
Image source: Getty Images.
So what
"Roku is a valuable partner for content providers looking to reach a large and engaged audience, and we're looking forward to bringing this new option to Roku users," said Scott Rosenberg, Roku senior vice president and general manager of platform business, in a press release.
As the leading streaming-TV platform in the U.S., Roku is a crucial medium for services that want to reach as much of the country as possible.
Since Roku takes a share of subscription fees on its platform, it will likely see a financial benefit from Apple TV+.
Now what
Roku's platform business has been on fire. Platform revenue jumped 86% year over year in Q2, fueled by a 39% increase in active accounts and a 72% jump in streaming hours.
Apple TV+'s launch on Nov. 1 will likely help boost the company's active user count and hours streamed even further.
