iWorld
Roku reports strong growth in 2024, surpassing $4bn revenue
MUMBAI: Streaming platform specialist Roku has announced robust financial results for 2024, with total net revenue reaching $4.1 billion (£3.2bn), marking an 18 per cent year-over-year increase. Platform revenue grew to $3.5 billion, up 18 per cent year-over-year, or 15 per cent excluding political advertising spend. Gross profit rose 19 per cent to $1.8 billion.
The company reported significant growth in its user base, with streaming households reaching 89.8 million, representing a net increase of 9.8 million from 2023. Streaming hours climbed by 21.1 billion to 127.1 billion hours, whilst average revenue per user reached $41.49 on a trailing 12-month basis, up 4 per cent.
In a letter to shareholders, Roku highlighted its fourth quarter achievement of surpassing $1 billion in platform revenue, a 25 per cent year-over-year increase. The company noted that its US market penetration has exceeded half of all broadband households.
Device Business Performance: The company maintained its position as the leading TV operating system in the US, Canada and Mexico. Device revenue rose 20 per cent to $590.1 million in 2024, with fourth-quarter revenue of $165.7 million, up 7 per cent. However, increased seasonal discounts affected fourth-quarter device gross margins, which stood at negative 29 per cent.
Content Platform Growth: The Roku Channel, the company’s content platform, reached approximately 145 million people in US households during the fourth quarter, maintaining its position as the third most popular app on the platform. Streaming hours on the channel increased by 82 per cent year-over-year, with more than 80 per cent of streaming hours originating from the Roku Experience in December.
Future Outlook: For the first quarter of 2025, Roku forecasts total net revenue of $1.005 billion, a 14 per cent increase year-over-year. The company projects platform revenue growth of 16 per cent, whilst device revenue is expected to remain flat due to elevated inventory levels following the holiday period.
For the full year 2025, Roku anticipates total net revenue of $4.61 billion, with platform revenue reaching $3.95 billion, representing 12 per cent growth. The company expects to achieve positive operating income by 2026.
The company will discontinue quarterly reporting of streaming households and average revenue per user metrics from the first quarter of 2025.
iWorld
Netflix cuts jobs in product division amid restructuring
Layoffs hit creative studio unit as leadership and strategy shifts unfold.
MUMBAI: The streaming wars may be fought on screen, but the latest plot twist is unfolding behind the scenes. Netflix has reportedly begun laying off several dozen employees from its product division as part of an internal reorganisation, according to a report by Variety. The cuts are believed to have primarily affected the company’s creative studio unit, which works on marketing assets such as in app trailers, promotional visuals and live experience content for the streaming platform.
The company has not disclosed the exact number of employees impacted.
According to the report, the layoffs were not tied to employee performance. Instead, the restructuring eliminated certain roles while other employees were reassigned to different teams within the organisation.
The roles affected are understood to include designers, producers and creative specialists responsible for marketing and brand experience initiatives.
The job cuts come as Netflix adjusts its leadership structure and reshapes its product and creative teams. Last month, Elizabeth Stone was promoted from chief technology officer to chief product and technology officer, giving her oversight of product, engineering and data operations across the company.
Earlier, in December 2025, Netflix also appointed Martin Rose as head of creative for global brand and partnerships, a move seen as part of a broader restructuring of the company’s brand and product functions.
Despite the layoffs, Netflix remains one of the largest employers in the streaming sector. The company is estimated to employ around 16,000 people globally, with roughly 70 percent of its workforce based in the United States and Canada. In 2023, the company reported approximately 13,000 employees, indicating that its headcount had grown significantly before the latest restructuring.
The workforce changes arrive at a time when Netflix is navigating a shifting financial and strategic landscape in the global entertainment industry.
The streaming giant recently secured $2.8 billion in additional cash after receiving a breakup fee from Paramount Skydance following its withdrawal from a deal involving Warner Bros. Discovery.
Speaking to Bloomberg, Netflix co chief executive Ted Sarandos explained that the company had evaluated multiple scenarios during the negotiations but chose not to match the competing offer once it learned that a higher bid had been submitted.
Netflix had capped its offer at $27.75 per share and ultimately stepped back rather than pursue Paramount’s $111 billion acquisition deal, which included a personal guarantee.
Sarandos also cautioned that the financing structure behind the Paramount Skydance transaction could have ripple effects across the entertainment industry.
According to him, the debt heavy deal could trigger significant cost cutting, with David Ellison, chief executive of Paramount Skydance, expected to eliminate about $16 billion in costs and potentially cut thousands of jobs as part of the integration process.
For Netflix, the current restructuring appears to be part of a broader attempt to streamline operations while continuing to invest in product, technology and global content even as the streaming industry enters a new phase of consolidation and financial discipline.
