1.1 Roku's Platform Business Is The Biggest Driver Of Growth
Roku's platform segment accounted for 55% of total revenues in 2018, up from 15% in 2015. The key drivers of Roku's platform revenues are its Active Accounts and Average Revenues Per User (ARPU). The number of active Roku Accounts has grown from 9 million in 2015 to about 27 million at the end of 2018, driven by a higher installed base of Roku players and Smart TVs with Roku OS. Over Q1'19, the company estimated that over 1 in 3 Smart TVs sold in the U.S. were Roku powered.ARPUs have been trending higher from about $9 in 2016 to about $18 in 2018, driven by higher advertising sales, subscriptions, and a-la-carte purchases made on its platform. The company takes a 20% cut of the purchases made on its platform and can take as much as 30% of ad inventory on ad-supported channels.