Roku could be winning the streaming war without making any shows
Video-streaming provider Roku (ROKU) appears set to end the year on solid footing after expanding its strategic partnership with Nielsen.
On Monday, Nielsen and Roku announced an expansion of their measurement partnership that will integrate Roku’s viewing data into Nielsen’s advanced measurement tools.
As part of the deal, Roku will also gain access to Nielsen’s Streaming Platform Ratings, which offer deeper insight into how audiences engage with both subscription-based and ad-supported streaming services.
For Roku, the significance lies in more accurate and standardized measurement for advertisers, a key factor in making ad buying more reliable and valuable.
Folding Roku’s sizable data set, with its devices accounting for a meaningful share of U.S. TV viewing, into Nielsen’s industry-recognized ratings framework could enhance how the platform’s streaming catalog and ad inventory are valued.
“Our extended strategic partnership with Nielsen will help further our goal of a better TV advertising system, focused on interoperability and driving performance,” said Sarah Harms, an executive within Roku’s marketing unit.
The expanded partnership may also support Roku’s ad-supported growth. With deeper insight into viewing behavior, particularly on The Roku Channel, now one of the largest ad-supported streaming platforms in the U.S., Roku is better positioned to attract and retain advertising dollars.
Beyond advertising, Roku has been steadily building out its subscription strategy. In August, the company launched an ad-free subscription tier, a $3 monthly offering called Howdy, adding a modest but incremental revenue stream.
Even so, advertising remains the company’s bread and butter, and the Nielsen partnership underscores just how central it is to Roku’s long-term strategy.
Roku’s ad dominance
The third quarter marked an important milestone for Roku, as the company returned to profitability, posting nearly $25 million in net income.
It was also a breakout period for its core business: platform revenue topped $1 billion for the first time, helping drive total net revenue up 14% year over year to $1.2 billion.
Advertising and platform-related services continue to underpin that growth. According to data from Trefis, Roku’s ads and commission segment is projected to account for roughly 87% of the company’s total revenue in fiscal 2025, cementing its role as Roku’s primary growth engine.
According to Zacks Equity Research, Roku’s advertising momentum has allowed the company to grow revenue faster than the broader, and increasingly crowded, over-the-top streaming market.
Roku’s momentum has also been reflected in its share price, which is up more than 47% this year. The rally has accelerated recently, with shares gaining roughly 17% over the past month.