In a strategic move to bolster its streaming services, Roku has announced the acquisition of Frndly TV, a subscription-based live TV platform renowned for its affordable pricing and extensive content library. This deal underscores Roku's commitment to enhancing user experience by integrating diverse live-streaming options while expanding its revenue streams through direct-to-consumer offerings. With an impressive lineup of over 50 channels and thousands of on-demand titles, Frndly TV brings significant value to Roku's ecosystem. The transaction is expected to close in the second quarter of the year, marking another milestone in Roku's ongoing growth trajectory.
Roku Acquires Denver-Based Subscription Service Frndly TV
During this golden season of innovation in the tech industry, Roku unveiled plans to acquire Frndly TV, a leading subscription streaming service based in Denver, Colorado. Founded in 2019, Frndly TV offers subscribers access to more than 50 popular live television channels and a vast array of on-demand content starting at just $6.99 per month. Users can also enjoy unlimited cloud-based DVR capabilities, allowing them to record their favorite shows effortlessly, alongside access to any program aired within the past 72 hours.
This acquisition aligns perfectly with Roku’s strategy to expand its platform revenue and enhance its subscription services. According to Anthony Wood, Founder and CEO of Roku, "Frndly TV represents a powerful addition to our portfolio due to its rapid expansion and deep expertise in delivering high-quality direct-to-consumer experiences." Upon completion of the acquisition, Frndly TV's team will continue to operate under Roku's umbrella, ensuring uninterrupted service and further innovation.
Frndly TV CEO and Co-Founder Andy Karofsky expressed excitement about the partnership: "Joining forces with Roku allows us to maintain our mission of offering feel-good entertainment at competitive prices while accelerating our growth potential. Our alignment with Roku's leadership position in connected TV ensures we reach even more customers who seek top-tier content at unbeatable rates."
The acquisition is valued at $185 million in cash, with $75 million held back contingent upon achieving specific performance targets over the next two years. Post-acquisition, Frndly TV will remain accessible across all existing platforms, including Amazon Fire TV, Android TV, Google TV, Apple TV, Samsung devices, Vizio TVs, web browsers, mobile apps (Android and iOS), and Chromecast.
Meanwhile, Roku reported strong Q1 financial results, with total net revenue reaching $1.02 billion—an increase of 16% compared to the previous year. Streaming hours climbed to 35.8 billion, reflecting a rise of 5.1 billion hours from the same period last year. In its shareholder letter, Roku highlighted a 17% growth in Platform revenue to $881 million, driven by both video advertising and streaming distribution activities. Looking ahead, Roku anticipates total net revenue of approximately $1.07 billion for Q2, representing an 11% YoY growth.
For the full year, Roku reaffirmed its outlook for Platform revenue of $3.95 billion and Adjusted EBITDA of $350 million. Despite evolving market conditions, the company remains optimistic about its long-term prospects and confident in its ability to achieve positive operating income by 2026.
As technology continues to reshape the media landscape, Roku's acquisition of Frndly TV exemplifies the power of strategic partnerships in driving innovation and meeting consumer demands. By combining Frndly TV's robust content library with Roku's expansive platform, the company positions itself as a formidable player in the ever-expanding world of streaming entertainment. This merger not only enhances Roku's competitive edge but also sets a benchmark for future collaborations within the industry. For consumers, it means greater accessibility to premium content at attractive price points, reinforcing the notion that quality entertainment need not come at exorbitant costs.