What Is Roku? Pricing & How It Works
Daniel Stock | 12 Min Read
Disclaimer: MNTN is a performance-focused Connected TV advertising platform. This article is for informational purposes only. To sign up for or learn more about Roku, please visit their official website.
Quick Takeaways
What consumers and marketers need to know about Roku.
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Roku combines affordable hardware, free content, and premium streaming options.
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Its platform now reaches over 100 million streaming households worldwide.
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Advertising and subscriptions increasingly drive Roku’s revenue and growth.
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Roku simplifies discovery across live, free, and on-demand programming.
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MNTN helps brands activate Roku inventory for accountable growth.
Streaming TV keeps expanding, and Roku has reached a major milestone: more than 100 million streaming households worldwide as of April 2026. That growth reflects a broader shift toward ad-supported viewing, with viewing hours on free ad-supported streaming TV (FAST) channels up 43% year over year.
For marketers, understanding Roku’s ecosystem shines more light on where audiences stream, how ad-supported inventory works in CTV advertising, and the unique ways brands can connect with viewers. For consumers, we’ve got you covered, too. From the available devices, to the features, and even the costs. Let’s dive in.
What Is Roku?
Roku is a TV streaming platform that brings shows, movies, live programming, and streaming apps to the biggest screen in the house. Its ecosystem spans Roku streaming players, Roku-made TVs, licensed Roku TV models, The Roku Channel, and premium subscription services, giving viewers one place to find free, ad-supported, and paid content.
Brief History and Evolution of Roku
From an early streaming-player startup to a global TV platform, these milestones show how Roku expanded across living rooms worldwide.
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2002: Roku Is Founded
Anthony Wood launches Roku in October 2002. The company goes on to pioneer TV streaming and build a platform connecting viewers with internet-delivered entertainment.
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2008: The First Roku Player Launches
Roku introduces its first streaming player, the first device built to stream Netflix directly to the TV. Starting with one channel, it establishes Roku’s place in the emerging streaming market.
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2014: Roku TV Extends the Platform
Roku introduces Roku TV and licenses its platform and software to manufacturers, with TCL and Hisense as the first partners. Streaming moves from a separate player into the television.
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2017: Roku Goes Public
Roku launches The Roku Channel and begins trading on Nasdaq in September 2017. Together, the milestones deepen its shift from a device business into a broader streaming and advertising platform.
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2023–2026: Roku Scales Its TV Ecosystem
Roku launches its first company-made TVs in the U.S. in 2023 and surpasses 100 million streaming households worldwide in 2026. Its business now spans players, Roku-made and partner TVs, content, subscriptions, and advertising.
How Does Roku Work?
In a nutshell, Roku connects your TV to the internet and delivers streaming content through apps and channels. Once a Roku streaming player or Roku TV is connected to Wi-Fi or Ethernet, viewers can add apps and watch free, paid, live, and on-demand programming.
So why does this matter? Well, rather than relying on a cable box or satellite subscription, Roku can serve as the access point between the TV and each streaming service. This makes it easy to switch between apps and select your favorite content from a single interface.
Roku Devices and Products
Roku’s product lineup covers several viewing needs, from plug-and-play streaming players to smart TVs with Roku built in.
Roku Streaming Players
Roku streaming players connect to a compatible TV through HDMI and add the Roku streaming experience. The current lineup ranges from the entry-level Roku Streaming Stick to the premium Roku Ultra, offering viewers options tailored to picture quality, performance, Wi-Fi capabilities, remote features, and budget.
Roku TV: Built-In Streaming Smart TVs
Roku TV models come with Roku OS built in, so viewers don’t need a separate streaming device. Roku offers its own Select, Plus, and Pro Series TVs, while various partner brands make TVs powered by Roku OS. Roku TVs can also receive over-the-air channels when connected to a compatible HDTV antenna.
Other Roku Products
Roku also offers smart home products, including cameras, video doorbells, lights, smart plugs, and home monitoring systems. Live feeds from Roku cameras and video doorbells can appear on a Roku TV or Roku streaming player via the Roku Cameras app, unifying entertainment and smart home management in a single ecosystem.
With all that said, you might be surprised to learn that the device portion of Roku’s business doesn’t drive the most revenue. It’s what happens after someone gets a device that fuels Roku’s operations.
Roku’s Revenue Mix Became More Platform-Led
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87% 2025 Platform Revenue Share
Platform revenue represented nearly 9 in 10 dollars of Roku’s annual revenue.
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+16 pts Increase Since 2020
Platform share increased from 71% in 2020 to 87% in 2025.
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30% Subscription Revenue Growth
Year-over-year increase in Roku subscription revenue in Q1 2026.
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22% Average Price per Subscription Growth
Year-over-year increase in the average price per subscription in Q1 2026.
| Fiscal Year | Platform Revenue Share | Devices Revenue Share |
|---|---|---|
| 2020 | 71% | 29% |
| 2021 | 82% | 18% |
| 2022 | 87% | 13% |
| 2023 | 86% | 14% |
| 2024 | 86% | 14% |
| 2025 | 87% | 13% |
Key Roku TV Features
Here’s what you can expect as a member of the Roku family:
1. Built-In Roku OS
Roku TV models run Roku OS, so viewers can stream without adding a separate player. The all-in-one setup keeps things simple: one customizable home screen for streaming apps, live TV, and connected devices.
2. Live TV and Free Entertainment
Roku TV gives viewers easy access to The Roku Channel, which offers free movies, shows, Roku Originals, and 500+ free live TV channels. And as mentioned earlier, viewers with an HD antenna can also add local broadcast channels.
3. Simple Search and Discovery
Roku’s interface is built to reduce the “what should we watch?” spiral. Roku Search, What to Watch, and Roku Zones help viewers find movies, shows, sports, and other content across participating apps without opening each app individually.
4. Voice Control and Mobile App Features
Roku TV supports voice search and controls through compatible Roku voice remotes and the Roku mobile app. The app also works as a remote, supports faster text entry, and offers Headphone Mode for private listening.
5. Smart Home Compatibility
Compatible Roku TV models can work with Google Assistant, Amazon Alexa, and Apple HomeKit, although supported controls vary by device and region. Roku TV also receives automatic software updates that add new features and channels over time.
Types of Content Available
Roku’s Streaming Store gives viewers access to thousands of apps, from major streaming services to niche programming. This section could easily be a full article on its own, so we’ll give you the Cliff Notes version.
- Free, ad-supported services such as The Roku Channel offer movies, shows, Roku Originals, and live programming.
- Premium subscription apps such as Disney+, Peacock, and Netflix provide on-demand movies, series, and original programming.
- Live TV apps such as Sling TV and YouTube TV offer news, sports, entertainment, and events.
- Free ad-supported streaming TV (FAST) channels deliver scheduled, linear-style programming without a paid subscription.
- Apps such as YouTube provide creator content, while dedicated apps offer podcasts, music, and radio programming.
The Roku Channel Gained Share Across TV Viewing and Streaming
Two before-and-after comparisons show how The Roku Channel expanded its share of total U.S. TV viewing and all U.S. TV streaming.
Earlier Total U.S. TV Viewing Share
The Roku Channel’s earlier share of total U.S. TV viewing.
Later Total U.S. TV Viewing Share
The Roku Channel’s later share of total U.S. TV viewing.
TV viewing change: share doubled, increasing by 1.5 percentage points.
Earlier U.S. TV Streaming Share
The Roku Channel’s earlier share of all U.S. TV streaming.
Later U.S. TV Streaming Share
The Roku Channel’s later share of all U.S. TV streaming.
Streaming change: an increase of 1.7 percentage points, or approximately 37%.
How to Sign Up for Roku
Getting started with Roku is straightforward and can be done during device setup or online.
- Visit my.roku.com/signup, then enter your personal information and create a secure password.
- Choose a Roku PIN and parental control settings to manage purchases and app installations.
- Link your Roku device by following the on-screen activation steps. Depending on the device, Roku may send an activation email or display a QR code.
- Add a payment method if prompted. Roku will only charge you when you make a purchase or have an active subscription.
- Browse and install apps from the Roku Streaming Store to customize your experience.
How Much Does Roku Cost?
Roku costs depend on the hardware you choose and any optional paid content or subscriptions.
Is Roku Free?
Creating a Roku account and activating a device are free. Roku also does not charge a monthly fee to use a Roku TV. Viewers can access free, ad-supported programming, while paid streaming services require separate subscriptions.
Hardware Costs
Roku streaming players currently range from $29.99 for the Roku Streaming Stick to $99.99 for the Roku Ultra. Roku-made Select Series 4K TVs are currently listed from $199.99 to $1,149.99, depending on screen size and features.
Content and Subscription Costs
Beyond hardware, optional costs can include paid apps, premium subscriptions, rentals, and purchases. To reiterate, services such as HBO Max and Paramount+ set their own subscription prices, so recurring costs depend on what each viewer chooses to add.
Does Roku Have Ads?
Yes. Roku displays ads across its platform, including on the home screen, within the Roku City screensaver, across streaming video inventory, and when viewers pause content in The Roku Channel. These placements help support Roku’s free, ad-supported programming while giving marketers high-visibility ways to reach audiences on the biggest screen in the house.
Since ads are targeted, they feel much less intrusive than traditional cable-style ads.
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59% Video Impression Growth
Year-over-year increase in video impressions in Q1 2026.
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96% Roku Streaming Households See Video Ads
Share of Roku streaming households that see video ads somewhere along their viewing journeys.
How Does Roku Advertising Work?
Roku advertising helps brands reach audiences across its TV streaming ecosystem. Advertisers can run in-stream video, native home-screen placements, branded destinations, and interactive Action Ads. They can also target audiences using signals such as demographics, interests, location, streaming or shopping behavior, and first-party data.
Roku supports measurement across the entire customer journey, including reach, brand outcomes, website activity, conversions, sales attribution, and incrementality. Roku Ads Manager provides real-time insights and can optimize campaigns toward specific business goals.
But Roku isn’t just another tiny platform selling limited reach. Roku has scale (massive scale), and advertisers are taking notice. Take a look at the numbers.
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125M+ Daily U.S. Home-Screen Reach
More than 125 million people are represented by U.S. households reaching the Roku Home Screen each day.
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100M+ Streaming Households
Roku surpassed 100 million streaming households worldwide in April 2026.
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40%+ Third Party Programmatic Spend Growth
Ad spend through third party programmatic partners increased more than 40% year over year in Q1 2026.
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$612.7M Q1 2026 Advertising Revenue
Roku advertising revenue reported for the first quarter of 2026.
What Devices Support Roku?
Quick Recap: Roku streaming players connect to TVs through HDMI, so if you have a TV with an HDMI port, you’re ready to go. Roku TV models have Roku OS built in and require no separate player. Compatible Roku audio products can expand the setup, although support varies by model. The Roku mobile app can also control supported devices and enable features such as Headphone Mode.
Why You Need Performance TV
Roku puts a wide world of streaming choices within easy reach, creating more opportunities for brands to become part of the living room experience. MNTN helps advertisers turn premium CTV exposure into a performance channel through precise audience targeting, automated campaign optimization, and real-time measurement.
The next step is making every big-screen impression accountable to the goals that move the business forward. Bring digital-style precision to television advertising—sign up today with MNTN’s self-serve software.
Roku Streaming Platform: Final Thoughts
Roku successfully blends affordability, vast content options, and an evolving ad ecosystem, making it a staple for modern entertainment seekers and a powerful tool for advertisers navigating the CTV boom.
As streaming and ad-supported viewing continue to grow in 2026, understanding Roku’s pricing and functionality can help consumers maximize value while brands capitalize on targeted opportunities.
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