Roku ended the third quarter of 2022 with 65.4 million active accounts after adding an additional 2.3 million during the quarter. With a variety of different hardware products for consumers to choose from, Roku is one of the more popular streaming platforms around. On top of a selection of Roku players, TVs, and other hardware products, the company also offers The Roku Channel, its own in-house streaming service.
Thanks to its varied products and services, Roku has continually added new users each quarter. After ending 2021 with 60.1 active accounts, the number increased to 61.3 million at the end of the first quarter of 2022, and then to 63.1 million at the end of the second quarter. As of the end of Q3 2022, the number of active Roku accounts had risen to 65.4 million. Not only is this an increase of 2.3 million when compared to the previous quarter, but also an increase of 9 million when compared to the third quarter of 2021.
Streaming hours were also up as well, totaling 21.9 billion in the third quarter, an increase of 1.1 billion compared to the second quarter of the year. When compared to the third quarter of last year, the number of hours streamed is an increase of 3.9 billion. As detailed in the company’s Q3 2022 shareholders letter (PDF), streaming hours on The Roku Channel grew by more than 90% year over year. However, Roku did make the point that finding something to watch has become harder.
Specifically, Roku said that “TV audiences are spending longer and longer amounts of time staring at the TV screen trying to figure out what to watch and where to find it.” A situation, Roku says, is the result of an increase in the number of services, and the tendency for content to be moved from one service to another.
In terms of platform revenue, Roku saw a 15% year-over-year increase. While an increase in general, Roku did concede that this was “lower than our historical growth rates.” At the same time, Roku said that it was still “positive given the difficult macro environment.” The situation was slightly worse for player revenue, however, with Roku reporting $91 million for Q3 2022. This figure is down from the $91.2 million generated in the second quarter of the year, and down 7% when compared to the $97.4 million generated during the third quarter of 2021.
As to be expected, the fourth quarter of the year is typically a good player revenue period for the company, due to the Holiday season. However, Roku now predicts that its Q4 player (and platform) revenue will be lower year over year. The company does expect this period of uncertainty to only be temporary, but also said that it was difficult to predict when it will rebound or even become stable.