Please ensure Javascript is enabled for purposes of website accessibility

Roku Strikes Deal With Its Biggest Competitor

By Rhian Hunt - Jan 26, 2021 at 4:27PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The IMDb TV service will double its user base with the Roku alliance.

Amazon's (AMZN 0.25%) IMDb TV app will now appear on Roku (ROKU -2.76%) devices, offering Amazon's lineup of TV shows and movies alongside Roku's content. The free app had been competing with The Roku Channel, an ad-supported video-on-demand service similar to IMDb's.

Amazon could potentially double the number of viewers for its IMDb TV content with the partnership. Approximately 50 million customers currently use Fire TV monthly, the device where IMDb TV was chiefly available up until now. Roku integration will put the Amazon streaming app in the hands of 51.2 million active Roku platform users, Variety reports.

Streaming movies on a screen, with a video on demand menu and a person's hand holding a remote control.

Image source: Getty Images.

Roku's streaming accounts grew by 39% during 2020, exploding as people looked for home entertainment while the pandemic shut down most entertainment venues. According to Roku, streaming hours grew even faster, rising 55% year over year. Users watched 58.7 billion hours of streamed content during 2020, 17 billion of those hours, or 29% of the total, in the fourth quarter. These metrics are important to IMDb TV's success on the platform, since it is a free service supported by advertisements.

Neither company has revealed the exact terms of the deal. Mark Eamer, Amazon vice president of IMDb TV, said his company is aiming to deliver "our catalog of hit movies, acclaimed series, nostalgic TV and inventive IMDb TV Originals to Roku's engaged customers." The offerings will include the spy thriller TV series Alex Rider, Mad Men, Chicago Fire, Schitt's Creek, and many others.

Roku's shares rose 148% during a successful 2020, and the company had an ambitious strategic plan even before the Amazon partnership.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Roku Stock Quote
Roku
ROKU
$94.20 (-2.76%) $-2.67
Amazon.com, Inc. Stock Quote
Amazon.com, Inc.
AMZN
$2,151.82 (0.25%) $5.44

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
330%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/21/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.