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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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Amazon launches fixed pricing for treatment of conditions such as hair loss. Hims & Hers stock drops 15%

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Amazon launches fixed pricing for treatment of conditions such as hair loss. Hims & Hers stock drops 15%

A worker delivers Amazon packages in San Francisco on Oct. 24, 2024.

David Paul Morris | Bloomberg | Getty Images

Amazon on Thursday announced Prime members can access new fixed pricing for treatment of conditions like erectile dysfunction and men’s hair loss, its latest effort to compete with other direct-to-consumer marketplaces such as Hims & Hers Health and Ro.

Shares of Hims & Hers fell as much as 17% on Thursday, on pace for its worst day.

Amazon said in a blog post that Prime members can see the cost of a telehealth visit and their desired treatment before they decide to proceed with care for five common issues. Patients can access treatment for anti-aging skin care starting at $10 a month; motion sickness for $2 per use; erectile dysfunction at $19 a month; eyelash growth at $43 a month, and men’s hair loss for $16 a month by using Amazon’s savings benefit Prime Rx at checkout.

Amazon acquired primary care provider One Medical for roughly $3.9 billion in July 2022, and Thursday’s announcement builds on its existing pay-per-visit telehealth offering. Video visits through the service cost $49, and messaging visits cost $29 where available. Users can get treatment for more than 30 common conditions, including sinus infection and pink eye.

Medications filled through Amazon Pharmacy are eligible for discounted pricing and will be delivered to patients’ doors in standard Amazon packaging. Prime members will pay for the consultation and medication, but there are no additional fees, the blog post said.

Amazon has been trying to break into the lucrative health-care sector for years. The company launched its own online pharmacy in 2020 following its acquisition of PillPack in 2018. Amazon introduced, and later shuttered, a telehealth service called Amazon Care, as well as a line of health and wellness devices.

The company has also discontinued a secretive effort to develop an at-home fertility tracker, CNBC reported Wednesday.

— CNBC’s Annie Palmer contributed to this report.

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WikiLeaks whistleblower Chelsea Manning says censorship is still ‘a dominant threat’

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WikiLeaks whistleblower Chelsea Manning says censorship is still 'a dominant threat'

Chelsea Manning: Censorship still a dominant threat

Former U.S. Army intelligence analyst Chelsea Manning says censorship is still “a dominant threat,” advocating for a more decentralized internet to help better protect individuals online.

Her comments come amid ongoing tension linked to online safety rules, with some tech executives recently seeking to push back over content moderation concerns.

Speaking to CNBC’s Karen Tso at the Web Summit tech conference in Lisbon, Portugal, on Wednesday, Manning said that one way to ensure online privacy could be “decentralized identification,” which gives individuals the ability to control their own data.

“Censorship is a dominant threat. I think that it is a question of who’s doing the censoring, and what the purpose is — and also censorship in the 21st century is more about whether or not you’re boosted through like an algorithm, and how the fine-tuning of that seems to work,” Manning said.

“I think that social media and the monopolies of social media have sort of gotten us used to the fact that certain things that drive engagement will be attractive,” she added.

“One of the ways that we can sort of countervail that is to go back to the more decentralized and distribute the internet of the early ’90s, but make that available to more people.”

Nym Technologies Chief Security Officer Chelsea Manning at a press conference held with Nym Technologies CEO Harry Halpin in the Media Village to present NymVPN during the second day of Web Summit on November 13, 2024 in Lisbon, Portugal. 

Horacio Villalobos | Getty Images News | Getty Images

Asked how tech companies could make money in such a scenario, Manning said there would have to be “a better social contract” put in place to determine how information is shared and accessed.

“One of the things about distributed or decentralized identification is that through encryption you’re able to sort of check the box yourself, instead of having to depend on the company to provide you with a check box or an accept here, you’re making that decision from a technical perspective,” Manning said.

‘No longer secrecy versus transparency’

Manning, who works as a security consultant at Nym Technologies, a company that specializes in online privacy and security, was convicted of espionage and other charges at a court-martial in 2013 for leaking a trove of secret military files to online media publisher WikiLeaks.

She was sentenced to 35 years in prison, but was later released in 2017, when former U.S. President Barack Obama commuted her sentence.

Asked to what extent the environment has changed for whistleblowers today, Manning said, “We’re at an interesting time because information is everywhere. We have more information than ever.”

She added, “Countries and governments no longer seem to invest the same amount of time and effort in hiding information and keeping secrets. What countries seem to be doing now is they seem to be spending more time and energy spreading misinformation and disinformation.”

Manning said the challenge for whistleblowers now is to sort through the information to understand what is verifiable and authentic.

“It’s no longer secrecy versus transparency,” she added.

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SoftBank-backed fintech Zopa aims to double profit this year as it eyes 2025 current account launch

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SoftBank-backed fintech Zopa aims to double profit this year as it eyes 2025 current account launch

Jaidev Janardana, CEO of U.K. digital bank Zopa.

Zopa

LISBON, Portugal — British online lender Zopa is on track to double profits and increase annual revenue by more than a third this year amid bumper demand for its banking services, the company’s CEO told CNBC.

Zopa posted revenues of £222 million ($281.7 million) in 2023 and is expecting to cross the £300 million revenue milestone this year — that would mark a 35% annual jump.

The 2024 estimates are based on unaudited internal figures.

The firm also says it is on track to increase pre-tax profits twofold in 2024, after hitting £15.8 million last year.

Zopa, a regulated bank that is backed by Japanese giant SoftBank, has plans to venture into the world of current accounts next year as it looks to focus more on new products.

The company currently offers credit cards, personal loans and savings accounts that it offers through a mobile app — similar to other digital banks such as Monzo and Revolut which don’t operate physical branches.

“The business is doing really well. In 2024, we’ve hit or exceeded the plans across all metrics,” CEO Jaidev Janardana told CNBC in an interview Wednesday.

He said the strong performance is coming off the back of gradually improving sentiment in the U.K. economy, where Zopa operates exclusively.

Commenting on Britain’s macroeconomic conditions, Janardana said, “While it has been a rough few years, in terms of consumers, they have continued to feel the pain slightly less this year than last year.”

The market is “still tight,” he noted, adding that fintech offerings such as Zopa’s — which typically provide higher savings rates than high-street banks — become “more important” during such times.

“The proposition has become more relevant, and while it’s tight for customers, we have had to be much more constrained in terms of who we can lend to,” he said, adding that Zopa has still been able to grow despite that.

A big priority for the business going forward is product, Janardana said. The firm is developing a current account product which would allow users to spend and manage their money more easily, in a similar fashion to mainstream banking providers like HSBC and Barclays, as well as fintech upstarts such as Monzo.

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“We believe that there is more that the consumer can have in the current account space,” Janardana said. “We expect that we will launch our current account with the general public sometime next year.”

Janardana said consumers can expect a “slick” experience from Zopa’s current account offering, including the ability to view and manage multiple account bank accounts from one interface and access to competitive savings rates.

IPO ‘not top of mind’

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