Cord Cutting May Accelerate, Roku CEO Says; Stock Falls After Q3 Results
Cord-cutting “continues to alter the TV landscape,” said Roku CEO Anthony Wood on a Wednesday-evening earnings call after reporting Q3 results that led to a stock plunge. “We believe the trend will accelerate as more consumers understand the choice and…
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value that streaming offers.” With 24 million “active accounts,” the “scale” of Roku’s customer base “now rivals large traditional U.S. cable and satellite companies,” he said. The chief predicted "more content will move to streaming" as pay-TV bundles shrink. Though executives said the streamer again raised its 2018 outlook, it now expects Q4 net to range between a $4 million loss and profit of $3 million. That's reportedly less profit than expected. The company "tightened our Q4 outlook slightly," Chief Financial Officer Steve Louden told analysts.