What No One Is Seeing About The Advertising Push At Netflix And Roku


  • After listening to the latest earnings call, I think I finally understand the real impetus behind Netflix’s new advertising tier, and Roku’s Channel.
  • The thesis seems to hinge on an enduring partition of TV advertising spending from the broader ad market, a quasi-social exclusion effect.
  • If correct, my thesis that Roku cannot produce an enduring advertising profit stream will require revision.
  • I am not convinced it is correct, however. The partition in question seems highly unlikely to survive with cord-cutting accelerating so quickly.
  • Amazon and Alphabet still seem to me the only long-term advertising winners in TV, while Netflix and Roku remain buys for other, platform-based reasons.

Binge watching the favorite TV show

Rainer Puster

As Roku (NASDAQ:ROKU) continues to struggle to claw back more of its 2022 losses, the main thesis put forward by the bulls continues to shift away from its hardware division and now focuses almost exclusively on its

Disclosure: I/we have a beneficial long position in the shares of ROKU, NFLX, AMZN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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