Few key things happened around the Ad Tech & Media Tech world this week.
Roku sees a rise in Q2 sales beating expectations
Roku saw a better-than-hoped Q2 with device sales upping toUS $111.3 million with 43 million monthly active viewers. Stressing the extent of viewing during stay-at-home orders which have been issued around the world, Roku said that streaming time on its devices rose by 65% year-over-year to 14.6 billion hours. Roku similarly mentioned that existing clients added about 3 million devices during the quarter, indicating that Roku viewers are satisfied with the brand. The company commented that while advertising is its vital revenue source, it still relies on device sales to drive revenue, with overall revenues growing by 42% in the quarter and 41% year-over-year to US$ 356 million. Revenue of the Platform segment which includes the ad sales grew by 46% year-over-year to US$ 244.8 million. Its monetized video ad impressions increased by about 50% year-over-year, buoyed by the acquisition of ad platform dataxu in Q4 2019.
Q2 U.S. Streaming & Digital Revenue for ViacomCBS rises by 25%
ViacomCBS has reported that their domestic streaming and digital video sales, including streaming subscription and digital video advertising revenue, have risen to over $489 million in Q2, driven by a 52% increase in streaming subscription revenue and strong growth at Pluto TV. Domestic paid streaming subscribers touched 16.2 million. Pluto TV’s domestic monthly active users increased by 61% to 26.5 million. The stock jumped higher in early trading on the numbers. The company has said that the total ad revenue went down by 27% yoy diue to COVID-19 hitting worldwide advertising demand and strong comparisons sports-wise to the same quarter last year that included the broadcast of the national semifinals and championship games of the NCAA Tournament and professional golf. Consolidated revenue fell by 12% to $6.2 billion.
Chinese based Tencent to create a $10 billion streaming giant
Tencent HoldingsLtd. is driving conversations to unite China’s biggest game-streaming platform Huya and DouYu, people close with the subject told, in a deal that would permit it to dominate the $3.4 billion arenas. The Chinese social media titan which owns a 37% stake in Huya and 38% of DouYu has been discussing such a merger with the DuoYu over the past few months, although particulars are still to be completed, told the people, who asked not to be identified because discussions are private. Tencent is seeking to become the largest shareholder in the united company, one person said. A deal would result in an online behemoth with over 300 million viewers and a market value of over $10 billion, cementing Tencent’s lead in Chinese games and social media. Faced with increasing competition for advertisers from ByteDance and its popular apps, the WeChat operator would then run a considerably profitable service similar to Amazon’s Twitch.