Roku Acquires 23 Shows from Quibi - Expanding Original Content

Roku Expands Original Content Offering

Roku announced today a significant expansion to its original programming. A total of 23 new Roku Original programs are scheduled to premiere on August 13th, exclusively on The Roku Channel’s free streaming platform.

This addition builds upon the initial collection of 30 originals launched in May. Notably, the new lineup incorporates content acquired through Roku’s purchase of the content library from the previously operating streaming service, Quibi.

Unreleased Quibi Programs Now Available

Among the new programs are four titles that were not previously released on Quibi before Roku’s acquisition. These include “Eye Candy,” a competition series modeled after “Nailed It!” and inspired by the Japanese show “Sokkuri Sweets.”

“Squeaky Clean,” a cleaning competition hosted by Leslie Jordan, is also included. Season 2 of the reality show “Thanks a Million,” executive produced by Jennifer Lopez, will also debut.

Furthermore, the 10-part documentary series “What Happens in Hollywood,” directed by Marina Zenovich, offering insights into the industry’s most guarded secrets, will be available.

Additional Programs Joining the Roku Channel

The expanded catalog also features a diverse range of other programs. These include: “&Music,” “The Andy Cohen Diaries,” “Benedict Men,” “Elba vs Block,” “Fierce Queens,” “Floored,” “Gone Mental with Lior,” “Mapleworth Murders,” “Memory Hole,” “Nice One!,” “Nikki Fre$h,” “Run this City,” “The Sauce,” “Sex Next Door,” “Singled Out,” “Skrrt with Offset,” “The Stranger,” “Survive” and “Wireless.”

Performance and Future Investment in Originals

During its recent second quarter earnings call, Roku highlighted the positive performance of its original content. The company reported “good performance” from the new catalog, though specific viewership figures were not disclosed.

Roku intends to continue investing in original programming. However, executives emphasized that originals represent a smaller portion of the overall content strategy for The Roku Channel.

Licensing Remains the Primary Content Source

According to Roku CEO Anthony Wood, the majority of content on The Roku Channel is sourced through licensing agreements with various content partners.

“Originals are a valuable component of a broader content portfolio,” Wood stated. “Licensing remains the primary source, but originals offer distinct advantages and enhance the overall offering.”

He also clarified that the expansion into original content will not negatively impact the gross margins associated with The Roku Channel’s ad-supported video on demand (AVOD) business model.

Benefits of Original Content

The focus on originals, including the acquisition of “This Old House,” is primarily aimed at attracting new users and bolstering the advertising business.

“Originals create a halo effect,” Wood explained. “They are beneficial during upfronts, strengthen our advertising business, and attract new customers to The Roku Channel.”

Increased user engagement driven by original content translates to more advertisers, including new ones, providing Roku with additional resources to invest in further content development and business expansion.

Roku reported that over 42% of its advertisers were new to the company’s upfront advertising offerings, a result attributed to the availability of original programming on The Roku Channel.

Mixed Q2 Results for Roku

Despite exceeding Wall Street expectations with earnings per share of $0.52 (compared to estimates of $0.13) and revenue of $645 million (versus estimates of $618 million), Roku experienced a decline in streaming hours during the second quarter.

Streaming hours decreased by 1 billion compared to the first quarter of 2021. Roku attributed this decrease to the easing of pandemic restrictions and a return to pre-pandemic activities such as dining, entertainment, and travel.

Despite a 19% year-over-year increase in worldwide streaming hours, Roku’s shares fell by more than 8% following the earnings report.