Netflix Dec 9 Tech Talk Presentation

©2015 Roku Inc. All rights reserved. ® 1

Roku – Scaling for GrowthShobana Radhakrishnan| Dec 09, 2015


Agenda• Overview• Scaling for Future Growth• Technology Considerations


All TV will be streamed.


Roku platform

Roku TVs Pay TV solutionsStreaming players


We power Pay TV solutions for MVPDs

Sky UK

Sky Deutschland

Sky Italy

Telstra


Streaming hours are booming on the Roku platform

3B Hours In 2014

2010 2011 2012 2013 20140

500 1,000 1,500 2,000 2,500 3,000 3,500 Streaming Hours Growth

2.5B hours streamed in the first half of 2015


Key Metrics

7.5+ million active accounts

2.5B hours streamed in 1H 2015

60 hrs streamed per month per active account


Channel Developers

Roku Cloud Services

Roku TV and SetTop Boxes

Roku Powered Devices

Roku Ecosystem

Search Channel Infrastructure

Partner Feed Processing

Billing PlatformChannel Partners

Data Analysis and Reporting

Payment Platforms


Channel Developers

Roku Cloud Services



Roku Ecosystem

Search Channel Infrastructure

Partner Feed Processing

Billing PlatformChannel Partners

Data Analysis and Reporting

Payment Platforms

Channel Partners


Technology for Scaling

• Cloud-native• Single tenant with independent scaling• Micro-service architecture• Persistent Storage• Fully continuous deployment


What we have learnt

• Access to data on devices is powerful• Hiring and execution critical to ensuring high

growth• Adaptive architecture key for international scaling



Addendum


So why the focus on scaling the platform?


Total weekly video hours used (M) according to survey respondents

SOURCE: NPD Survey, 2015

Roku leads all streaming players and smart TVs

Microsoft Xbox Sony PlayStation Roku Players/ Stick

Samsung Smart TV

Amazon Fire TV/ Stick

Vizio Smart TV Google Chromecast

Apple TV LG Smart TV

64.4 64.3

57.5

34.4

26.423.1

20.4 18.814.7


Breadth and depth of relationships


Opportunity Ahead


59%

SOURCE: Nielsen Cross-Platform Report; Sept 2014

US households need a streaming solution

Have 3 or more TVs that need connecting

88%

89%

Don’t have a streaming player

Don’t have a Smart TV


The opportunity is global

Broadband homes WW(SOURCE: Point Topic, 2014)701M

1.4B

202M

TV households WW(SOURCE: IDATE, 2012)

Homes where Netflix, YouTube, Google Play, Spotify and others are available(SOURCE: COMPANIES)


In Summary• Huge growth - Roku TV, Streaming, Roku Powered TVs• International Expansion• Developer and Partner Agility• Operational Scaling and Continuous Delivery


Comprehensive and unbiased search

• Search for movies, TV shows, actors and directors

• Results from up to 20+ top streaming channels

• Ordered by price

• Decision in consumers’ hands


Discovery features drive further engagement

• Follow movies, TV shows, actors and directors

• Receive automatic notifications when content available or price drops


The widest selection of entertainment

Launched 1K channels in 2014• More channels in more genres than competitors:• 8X more comedy• 5X more movies and TV• 4X science and tech• 4X more sports• 4X more news and weather• 3X more fitness• 2X more music• 2X more international


Channel Developers

Roku Channel Infrastructure


Payment Processor (e.g. Paypal)

Payment Platform (e.g. Aria)Finance and Tax Reconciliation


Channel Store and Billing Overview

Roku Billing


Summary• Streaming is reshaping the TV entertainment landscape, creating a

massive global market opportunity• Our platform is experiencing strong growth • We have the highest engagement in the category• Roku is uniquely positioned to help content providers, advertisers,

TV OEMs and MVPDs

Documents

Netflix Dec 9 Tech Talk Presentation