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Anthony Wood
Stephen Desaulniers | CNBC

Roku has built a dominant position as the co-leading streaming video distribution platform in U.S. households, in a near dead-heat with Amazon. The two companies own more than 70% market share, according to research firm Parks Associates.

But can Roku maintain its lead over Apple and Google if Americans’ future is a house controlled by a voice-enabled smart-home device that can turn on and off a television and change the channel?

That’s not what people want, claims Roku CEO and founder Anthony Wood. He spoke with CNBC’s Alex Sherman in an exclusive interview.

(This interview has been edited for length and clarity. Wood’s thoughts on Roku’s culture can be found here.)

Sherman: Let’s talk about interactivity. Is it just a matter of time before Roku lets me watch sports and bet from my TV at the same time and do other sorts of cool stuff people have never seen before?

Wood: It’s a complicated question. A couple points. One, it’s not as bad as it used to be, but even today, many companies just don’t really understand the attitude people have when watching TV. They want to sit there, drink their beer, and watch TV. You’ve seen over the years, there was this whole phase where there were interactive TV companies. They all failed, because people don’t want to do that. My philosophy is to keep things very simple. So any time interactive ideas have come up, we would not do that.

That said, there are some exceptions. For example, advertising — we offer interactivity to our ad partners. If you see an ad you’re interested in, like a car ad, you can browse, or do something simple like press a button and send me a text with an offer. So, we experiment with that type of interactivity because it doesn’t get in the way of the viewing experience. If you want to get a free coupon because you’re interested in a commercial, press a button, you can do that.

One of our main goals as a platform is to help you find content that you want to watch. Things like universal search — where you can search across services for an actor or a movie — and get information about if something is free on one service or you have to pay for it on another, that type of interactivity is something that people love, if it’s around discovering content. So, we’re looking for other ways to help people discover content that’s interactive in its nature.

In terms of sports betting — maybe. We’ll see.

Is the future of the TV ecosystem one where every device in the home is connected, and I just call out to my TV and it turns on, and I don’t need a remote anymore?

We are incredibly focused on being the best TV experience. That’s why we’re successful. There are a lot capabilities that I think are silly. People generally do not want to talk to their TV to turn it on, for example. Because as soon as you turn it on, you need to pick up your remote control anyway.

Well, you do today, maybe, but theoretically, you don’t have to, right? Why can’t I control everything by voice? Isn’t that easier?

I don’t think people want to talk to their TV. In cases where it’s faster and easier — search, for example — we make voice remotes. We focus on integrating voice into areas where it can really make a difference, like entering your password or your e-mail address or searching — those are things where it’s tedious to tap stuff out on your remote. But other areas, like just scrolling up and down or the power button, it’s actually easier to use the remote.

But I always lose my remote.

Well, that’s why we let you use your phone as a remote. We also have a cool feature called remote finder, where we help you find your remote for you. We’re big believers in remotes. You look at Chromecast, they made a huge bet that people wouldn’t use their remotes. That wasn’t the case.

One topic that investors are curious about is international expansion. Do you have a broad road map for international? I know you’re in Canada, Mexico and Brazil a little bit. But there’s a whole world out there. What’s the plan? Lay it out for us.

We have a strategy. We have tactics and road maps which we don’t disclose. But our strategy is pretty straightforward. If you look at the evolution of our business model, first we focus on scale, and once you have enough scale, then you start focusing on monetization. That’s the same strategy we’re talking on international. With most countries, we are still at the building scale stage as opposed to the monetization. There are some exceptions. With Canada, as you mentioned, that’s the first country we entered. Now we sell ads there and we have The Roku Channel there. So we’re doing monetization there.

The other part of our strategy is using the same techniques that have worked for us in the U.S. and applying them internationally. So, focus on growing our smart TV market share — we’re No. 1 in smart TV market share in the U.S. We’re No. 1 in Canada. We’re No. 2 in Mexico. Samsung is No. 1 there, but we’re catching up fast. So focusing on smart TVs and selling low-cost players is how we gain scale. For example, when we launch a player now, we launch it in many countries at the same time as opposed to just the U.S.

If you look at all the countries that we’ve entered, our market share is growing and we’re doing well. Android has been the default choice internationally for a long time because it was the only option. So they’re our biggest competitor. But as we add new countries and start focusing on them, we have an awesome solution. The same reason we’ve won in the U.S. is the same reason we expect to win internationally.

I’ll get into this in the main feature more in depth, but after you started Roku, you worked for Reed Hastings at Netflix for about nine months. Have you modeled your leadership at Roku after him? And if not, has there been anyone you’ve tried to emulate?

My relationship with Netflix is obviously very important to Roku, but I only worked there for nine months. It was nine months. It was a great experience. I’ve got lots of people I respect, but I haven’t tried to copy anyone in particular. I used to read a lot of business books when I was younger, but now I’ve stopped.

Is there a reason you stopped? Did you feel like you just didn’t get any use out of them anymore?

I think you go through different phases in your career. When you first start out, just like when you first start out in college, you just have no clue. So, reading books and talking to people is a good way to learn the basics. As you advance, I think, you become much more experienced, and you find that a lot of the books are not helpful. Like, “Oh yeah, if I didn’t know anything, that’s what I’d do,” but that’s not actually the right way to do it.

One of the best things I’ve done to help me build my skills since Roku has grown is to have an adviser — kind of like a coach. He used to be the CEO of a public company. So when I have issues, I talk to him. That’s David Krall. He was the CEO of Avid. He works one day a week for us being an adviser. Talking to an experienced CEO is helpful.

Describe yourself as a leader.

What I try to do is hire good people — people I want to work with, so there’s a good chemistry and team — and devise a strategy and some high-level goals. I might come up with the strategy or work with the team to develop the strategy, but there will be a strategy. I think I’m pretty strategic. And then, focus on execution, giving people the freedom and whatever they need to do their job. That’s what I spend my time on — hiring and strategy.

You’re 56 years old, is that right?

Maybe. That sounds right.

Do you expect to be running Roku as an independently traded company ten years from now?

I have no idea. I’m happy running Roku right now. I have no idea what I’m going to do 10 years from now.

Do you know who your successor at Roku will be?

All public companies have to have a succession plan, so we have one. I focus a lot on developing talent on my team. But often there’s talent outside the company as well. So, I don’t know. I have no plans to leave, but if we were to hire a new CEO, I’d imagine we’d look internally and externally.

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Bay Area commuters get free rides Tuesday morning due to Clipper card outage

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Bay Area commuters get free rides Tuesday morning due to Clipper card outage

Bay Area Rapid Transit (BART) passengers walk off a train at the Richmond station on March 15, 2023 in Richmond, California.

Justin Sullivan | Getty Images

Commuters in and around San Francisco rode into work for free on Tuesday morning due to an outage in the Clipper card system, which is used to handle payments for train, bus and ferry rides.

“ATTENTION: The Clipper system is experiencing an outage on all operators this morning,” the Bay Area Clipper account wrote in a post on X. “Please be prepared to pay your fare with another form of payment if required by your transit agency.”

Many buses were waving commuters on without asking for payment, and at Bay Area Rapid Transit (BART) train stations, the faregates were open, allowing travelers to walk through for free.

Clipper is owned by the Metropolitan Transportation Commission, which manages transportation for the nine-county Bay Area. The service is used by hundreds of thousands of tech workers in San Francisco and Silicon Valley.

The MTC website said there were 1.35 million unique Clipper cards — physical and digital — used in May, the highest monthly toll for the year and the most since December 2019, before the pandemic. A fact sheet from the MTC says Clipper is used by 800,000 transit riders a day across the region.

BART fare gates open on July 1, 2025, due to Clipper outage

Kif Leswing

BART, in particular, has undergone dramatic changes in recent years, most notably installing fare gates starting in late 2023, with full deployment expected to be completed by the end of this year.

In the first five months of the year, average BART station exits totaled between 170,000 and 182,000 a month, according to its website. Those numbers are way down from the pre-pandemic days of 2019, when averages were generally above 400,000 a month.

The MTC has plans to roll out an updated system called Clipper 2.0, which it says will be a “customer-focused, cost-effective fare collection system” with a “flexible platform for future fare structures.” Features include use across the various mobile operating systems, updated communication and “expanded retail, online and mobile sales.”

The update, however, has been routinely delayed, leading to tense confrontations at recent Clipper executive board meetings.

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Public companies bought more bitcoin than ETFs did for the third quarter in a row

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Public companies bought more bitcoin than ETFs did for the third quarter in a row

Ozan Kose | Afp | Getty Images

Corporate treasuries have surpassed ETFs in bitcoin buying for a third consecutive quarter as more companies try to benefit from the MicroStrategy playbook in a more crypto-friendly regulatory environment.

Public companies acquired about 131,000 coins in the second quarter, growing their bitcoin balance 18%, according to data provider Bitcoin Treasuries. ETFs showed an 8% increase or about 111,000 BTC in the same period.

“The institutional buyer who is getting exposure to bitcoin through the ETFs are not buying for the same reason as those public companies who are basically trying to accumulate bitcoin to increase shareholder value at the end of the day,” said Nick Marie, head of research at Ecoinometrics. 

Public company bitcoin holdings increased 4% in April, a tumultuous month after the market was rocked by President Donald Trump’s initial tariffs announcement, versus 2% for ETFs, he pointed out.

“They don’t really care if the price is high or low, they care about growing their bitcoin treasury so they look more attractive to the proxy buyers,” Marie added. “It’s not so much driven by the macro trend or the sentiment, it’s for different reasons. So it becomes a different kind of mechanism that can push bitcoin forward.”

Bitcoin ETFs, whose collective U.S. launch in January 2024 was one of the most successful ETF debuts in history, still represent the largest holders of bitcoin by entity with more than 1.4 million coins held today, representing about 6.8% of the fixed supply cap of 21 million. Public companies hold about 855,000 coins, or about 4%.

Regulatory relief

The trend reflects the significant regulatory relief the crypto industry broadly is benefiting from under the Trump administration. In March, Trump signed an executive order for a U.S. bitcoin reserve, sending a strong message that the flagship cryptocurrency, which has long been a source of reputation risk among many investors, is here to stay. The last time ETFs outpaced public companies in bitcoin buying was in the third quarter of 2024, before Trump was re-elected.

In the second quarter, GameStop began buying bitcoin, after its board approved it as a treasury reserve asset in March; health-care company KindlyMD merged with Nakamoto, a bitcoin investment company founded by crypto entrepreneur David Bailey; and investor Anthony Pompliano’s ProCap, kicked off its own bitcoin purchasing program and is going public through a special purpose acquisition company, or SPAC.

Strategy, recently rebranded from MicroStrategy, is still the main behemoth in the bitcoin treasury game. The company pioneered the strategy that more than 140 public companies globally are now emulating. It holds about 597,000 BTC, and is followed by the bitcoin miner Mara Holdings, which has almost 50,000 coins.

“It’s going to be very hard to catch Strategy’s scale,” said Ben Werkman, chief investment officer at Swan Bitcoin. “They’re going to be the preferred landing spot for institutional capital because of the deep liquidity around their equity, while these smaller equities are going to be really good risk returns for retail investors and smaller institutions that want more of that upside – that initial growth that comes in kicking off the strategy – because a lot of people missed it with MicroStrategy.”

A long-term case?

Marie suggested that 10 years from now, there probably won’t be so many companies committed to the bitcoin treasury strategy. Firstly, he said, the more that enter the category, the more diluted the activity at each firm becomes. Plus, bitcoin may be so normalized by then that proxy buyers are no longer constrained by rules and mandates around direct exposure to bitcoin.

“You can think about this wave as a bunch of companies that are trying to benefit from this arbitrage,” Marie said.

Werkman pointed out that most investors that are attracted to bitcoin treasury companies today already have a thesis around bitcoin. For them, leveraged bitcoin equities are likely how they try to outperform bitcoin itself, the foundational component of their investments.

“What people really like about these companies, and why they like to get into these smaller companies, is because they can do something that the investors holding spot bitcoin can’t do: go and accumulate more bitcoin on your behalf because they have access to the capital markets and can issue securities,” Werkman said.

There’s also likely to be a fair number of companies that convert their existing treasury holdings to bitcoin without pursuing leverage the way Strategy does, Werkman noted.

“They’ve got that ability to generate more and more value behind their shares, backed by bitcoin, plus whatever the operations of the company are generating. It’s a unique value proposition,” he said.

Don’t miss these cryptocurrency insights from CNBC Pro:

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AeroVironment stock drops 7% on offering plan to pay off debt

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AeroVironment stock drops 7% on offering plan to pay off debt

An image of a Quantix drone made by AeroVironment.

David Mcnew | Getty Images News | Getty Images

AeroVironment shares fell 7% Tuesday after the defense contractor said it plans to offer $750 million in common stock and $600 million in convertible senior notes due in 2030 to repay debt.

The drone maker said it would use leftover funding for general purposes such as boosting manufacturing capacity.

AeroVironment shares have soared 85% this year, ballooning its market value to about $13 billion.

Last week, shares of the Arlington, Virginia-based company rallied on strong fourth-quarter results, lifting higher as CNBC’s Jim Cramer called it the “next Palantir of hardware.”

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Last month, the company also closed its $4.1 billion acquisition of space-related defense tech company Blue Halo.

Earlier this month, President Donald Trump signed an executive order intended to boost drone production in the U.S. and crack down on unauthorized uses.

The company also has a high short interest level, which may have contributed to some of the recent gains, creating a short squeeze. This phenomenon occurs when a stock price surges, forcing those shorting the stock to purchase shares to cover their positions and prevent losses.

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