Roku secures $60 million in funding to expand
Posted on May 31, 2013 by YuMe
With a growing number of people streaming video on their television screens, more tech companies are jumping on the trend. While companies like Netflix, Hulu, Amazon and Wal-Mart are competing to provide the best content, device makers are striving to offer the best viewing tools. As the market expands, brands are finding online video advertising allows them to reach a wider consumer audience.
Recently, set-top box manufacturer Roku announced it just sealed $60 million in funding from investors to jumpstart its video streaming software. Media company Hearst and one unpublicized entity are behind the investment, which is also aimed at creating stronger partnerships between Roku and content providers.
TechCrunch explained the company's software plans go beyond just offering an affordable set-top box. The company has its eyes on the smart TV market, which is still slight but growing. While an actual Roku television may not be in the cards, devices like Apple TV and XBox One demonstrate the demand for all-in-one entertainment platforms. Both systems provide users with more than just video streaming options.
In a recent statement, Roku claimed it streamed more than one billion hours of video and music in 2012 alone. In addition, the company said its working with 24 original equipment manufacturers, most of which are television makers.
"Roku has a significant portfolio of investment and strategic partners with very successful global businesses," said founder and CEO Anthony Wood. "Their recognition of our brand success and belief in the Roku platform is a tremendous endorsement of our potential to shape the future television experience."
The heated competition in the streaming world demonstrates just how much consumers are watching content online. During April alone, 181.9 million Americans watched 38.8 billion videos on the Internet. Such a trend suggests online video advertising is extremely beneficial for brands and publishers alike.