Roku reported strong second-quarter results last week, posting $1.11 billion in revenue and 18% growth in platform sales, driven by advertising and its acquisition of Frndly TV. Despite beating Wall Street expectations, Roku shares fell nearly 15% on concerns about hardware tariffs and compressed device margins.

In recent weeks, the company has expanded its ad-supported channel lineup, deepened its authenticated data capabilities through a new partnership with Amazon Ads, and delivered exclusive live sports content—all strategic moves that offer key lessons for subscription-based businesses.

FAST Channel Expansion Supports Ad-Supported Growth
As part of its summer content rollout, Roku added 17 new FAST (Free Ad-Supported Streaming TV) channels, including nostalgic titles like American Gladiators and Xena: Warrior Princess, alongside music, sports, and documentary content. These channels support Roku’s advertising model while giving users more content without requiring a subscription. The approach helps Roku drive engagement, increase watch time, and monetize broader audience segments.

Amazon Ads Partnership Builds the Largest Authenticated CTV Footprint
In June, Roku and Amazon Ads announced a partnership that will allow advertisers to reach more than 80 million authenticated U.S. households across Roku, Fire TV, and other streaming environments. For advertisers, the partnership improves cross-platform reach, measurement, and targeting. For Roku, it strengthens its position as a data-rich advertising platform—and for subscription businesses, it raises the bar for authenticated identity infrastructure.

Exclusive MLB Game Demonstrates Live Event Strategy
On August 3, Roku streamed the Astros vs. Red Sox game exclusively on The Roku Channel—for free. The event was available to anyone using a Roku device, mobile app, or browser, showcasing the company’s ability to deliver live, premium content without a paywall. While the move generated attention from sports fans, it also reinforced Roku’s ability to compete in live-event streaming without relying on subscription revenue.

INSIDER TAKE

Roku’s recent moves are not just about streaming. They represent a deliberate shift toward hybrid monetization, data-rich advertising ecosystems, and diversified audience engagement. For subscription executives, the message is clear: future-ready businesses must think beyond subscriptions to build platforms that can flex across revenue streams and distribution channels.

1.  Monetization Is Moving Beyond Subscription-Only Models
   Roku’s results show that ad-supported platform revenue can scale effectively. Subscription companies should consider where and how alternative monetization models—such as advertising, licensing, or commerce—can complement core subscription offerings.
2. First-Party Authentication Drives Strategic Advantage
   The Amazon Ads deal demonstrates the power of authenticated user relationships. Subscription businesses that rely on anonymous users or fragmented data will struggle to deliver effective advertising or personalization. Building and maintaining a direct, logged-in user base is becoming essential.
3. Free Content Can Be a Growth Lever, Not a Threat
   By streaming premium content like MLB games for free, Roku expands its audience and creates acquisition opportunities. Subscription companies should explore limited-time free access, live events, or premium samplers to support top-of-funnel engagement.
4. FAST Channels Open Up Low-Cost Distribution Opportunities
   The FAST model allows brands to distribute content, monetize with ads, and build awareness without charging users. Subscription companies with video libraries, educational assets, or niche content may be able to test similar approaches as part of a hybrid strategy.
5. Platform Metrics and Investor Sentiment Don’t Always Align
   Even with double-digit platform growth, Roku’s stock dipped on macroeconomic and hardware concerns. Subscription leaders should monitor similar risks in their own business models, particularly if hardware, third-party dependencies, or regulatory costs are material.