Data

Analytics
Trends Analysis and
Forecasting
Presented by:
Aditya Kumar 63KB
Keerti Dev Singh86KB
Parul Tebriwal 95KB
Shaiza Khanam 105KB
Shishir Kumar 108KB
Aditya Raman Sinha- 251KB
Forecasting Industry Trends: Leveraging Data and Analytics

Roku’s Platform Revenue Growth Investment in Data Analytics

Roku's focus on engagement data from streaming
Roku’s platform revenues accounted for 71% of total hours.
revenue in 2020, with a gross profit of 96%. Implication: Helps project future trends in consumer
Implication: Highlights the shift towards platform- media consumption and target advertisements more
based revenue models, driven by advertising and effectively.
content partnerships.
Smart TVs and Connected TV Growth
Technological Advancements
Acquisitions such as Quibi in 2021 reflect the
strategic focus on exclusive content Roku held a 39% share of the CTV market in 2020
Implication: Indicates a shift towards proprietary Implication: CTVs are projected to dominate the
content as a key driver of future demand in the home entertainment space over the next five
streaming industry. years.
 Investment in Data Analytics
Time Series Analysis for User Engagement and Viewership
Trends

ARIMA (AutoRegressive Integrated

Moving Average): Can be used to
forecast streaming hours or active
users over time. Roku could utilize this
model to predict future viewership
trends based on historical data.
Statistical Tools for Sales and Revenue
Forecasting

Linear Regression: Roku can use this for

forecasting revenue, based on trends like
increased device sales or growing
advertising revenue. It could also be used
to predict the impact of partnerships or
new product launches.
Forecasting Industry Trends: Consumer Behavior and Competition
Shift Away from Linear TV Preference for Ad-Supported Content

By 2020, 77% of U.S. households had CTV

80% of U.S. adults prefer free content with ads
devices
Implication: Suggests a growing trend towards free
Implication: The continued decline of cable
ad-supported streaming options over paid
TV indicates growth in ad-supported
subscriptions.
streaming services.

Regulatory Landscape Competitive Positioning

Strategic disputes with Warner Media and Fox

Roku monitors data privacy regulations to
Implication: Forecasting increased competition
adjust its advertising model
with major players (Amazon, Google, Apple) in
Implication: Regulatory shifts will impact
both hardware and content licensing.
Roku’s ad targeting and business strategy in
the coming years.
 Growth Opportunities for Roku

Ad Spend Shift to Growing ARPU Mobile and AVOD

Connected TV (Average Revenue User Growth
(CTV) Per User) Trend: Ad-supported video on
Trend: CTV ad spend is projected Trend: Roku’s ARPU is expected demand (AVOD) users,
to grow from 20% to 30% by 2027 to increase from $330 to $370 by particularly on platforms like
Roku Channel, YouTube, and
(Exhibit 5). 2027 (Exhibit 4).
Tubi, are steadily growing.
Implication: Roku can capture a Implication: Roku can maximize
Implication: Roku should expand
significant share of CTV ad dollars revenue per user by offering its ad-supported content
by expanding its ad platform, premium features, better ad- offerings to attract more AVOD
improving targeting capabilities, targeting, and exclusive content, users, driving both user growth
and attracting more advertisers. even as competition intensifies. and ad revenue.
 Linking Today’s Strategy to Future
Industry Vision
Short-Term Tactics and Long- Investment in Low-Margin
Term Goals: Hardware
Roku’s shift to exclusive content, such as the Selling low-margin hardware to drive high-
acquisition of Quibi. margin platform revenue from advertising.
Implication: Aligns with Roku’s long-term Implication: Ensures future profitability by
goal of becoming a dominant player in building a large user base today.
streaming by leveraging proprietary content.

Innovation through R&D Sustainability and Agility

Advanced advertising infrastructure to Licensing OS to TV manufacturers.
support targeted ads. Implication: Flexibility in partnerships and
Implication: Investments in R&D today content licensing ensures Roku can quickly
ensure competitive positioning in the future, adapt to industry shifts.
particularly in ad-based revenue models.
 Strategic Agility and Consumer-
Centric Focus
Agility in Business Customer-Centric Ad-Supported Leadership and
Strategy Focus Content Strategy Vision
Pivoting from neutral content Personalized recommendations Decision to focus on ad- Anthony Wood’s leadership in
distribution to acquiring exclusive and user-friendly platform. supported free content. taking calculated risks and
content. Implication: Ensures Roku Implication: Taps into growing investing in R&D (ROCO case DA).
Implication: Demonstrates Roku’s remains aligned with consumer consumer demand for free Implication: Strong leadership
agility and ability to quickly needs, increasing user streaming options, boosting ensures that today’s decisions are
respond to competitive threats engagement and platform platform engagement. future-focused, positioning Roku
and market demands. dominance. for long-term success.
Strong positive Negative Influencers Forecasting for the Future
influencers Companies like Apple, Amazon, Using the MLRM, we forecasted
and Disney have negative future growth. If the relationships
The MLRM shows that coefficients, meaning they between the independent variables
Roku’s performance represent competition that and Roku’s performance remain
is heavily influeced could hinder Roku’s future stable, Roku could experience
by broad market performance. Today’s strategy significant growth in the coming
conditions should address how to compete years. This means the strategy
or collaborate with these today must focus on maintaining
companies to mitigate the these relationships while addressing
negative impact. potential competitive pressures.
 IMPACT ON STRATEGY BY VARIOUS FACTORS

TIME SPENT WITH SCREENS

THE INCREASE IN MOBILE DEVICE USAGE AND THE DECLINE IN

TRADITIONAL TV WATCHING INDICATES A SHIFT IN VIEWER
BEHAVIOR. ROKU’S STRATEGY SHOULD FOCUS ON ENHANCING
MOBILE-FRIENDLY CONTENT AND STREAMING EXPERIENCES TO
CAPTURE THE GROWING MOBILE AUDIENCE

ARPU (AVERAGE REVENUE PER USER)

ROKU'S ARPU HAS BEEN STEADILY GROWING, AND THIS TREND SUGGESTS
THAT MONETIZING THE PLATFORM THROUGH ADVERTISEMENTS OR
SUBSCRIPTION MODELS COULD BE HIGHLY EFFECTIVE IN THE FUTURE.
TODAY'S STRATEGY SHOULD FOCUS ON INCREASING ARPU BY OFFERING
PREMIUM FEATURES, ENHANCING AD TARGETING, OR INTEGRATING BETTER
SUBSCRIPTION PLANS.
 STRATEGIC RECOMMENDATIONS

Monetize AVOD Growth: Capitalize on

01 STRENGTHEN MOBILE STREAMING EXPERIENCE

02 the increase in ad-supported content
consumption.

EXHIBIT 3 SHOWS INCREASING MOBILE DEVICE GIVEN THE GROWING NUMBER OF AVOD USERS,
USAGE, AND ROKU CAN LINK THIS INSIGHT TO ITS ROKU SHOULD INCREASE ITS FREE, AD-SUPPORTED
FUTURE STRATEGY BY ENHANCING ITS MOBILE APP CONTENT OFFERINGS. THIS WILL HELP ATTRACT A
EXPERIENCE, ENSURING SEAMLESS MOBILE LARGER USER BASE, CONTRIBUTING TO BOTH ARPU
STREAMING, AND TARGETING MOBILE USERS WITH AND AD REVENUE GROWTH.
RELEVANT ADS

03 AS AD DOLLARS SHIFT FROM LINEAR TV TO

CONNECTED TV (EXHIBIT 5), ROKU SHOULD FOCUS
Leverage Connected TV: Capture ON ENHANCING ITS AD PLATFORM FOR CONNECTED
more market share as ad dollars shift TV, IMPROVING AD TARGETING, AND ATTRACTING
towards connected TV. MORE ADVERTISERS
Thank you !