Streaming Hours Become ROKU's Revenue Engine—Can the Momentum Last Across the Universe of Digital Video?

The Streaming Paradox: Why ROKU’s Viewing Growth Outpaces Netflix and Amazon

Connected television is fundamentally reshaping how platforms monetize engagement. While Netflix and Amazon build empires around subscription revenue and retail synergy, Roku has carved out a unique advantage: every incremental hour watched directly translates to expanded ad inventory and premium advertising opportunities.

In Q3 2025, Roku tallied 36.5 billion streaming hours—a 4.5 billion-hour year-over-year increase. Looking ahead, analysts project Q4 2025 streaming hours to reach 38.72 billion, representing 13.55% YoY growth. This trajectory matters because, unlike competitors, Roku’s platform economics funnel viewing time directly into monetizable moments for advertisers and creators alike.

Content as the Catalyst: From FAST Channels to Originals

Roku’s streaming-hour expansion isn’t accidental—it’s the product of deliberate content strategy. The platform has aggressively expanded its FAST (Free Ad-Supported Television) channel portfolio, introducing binge-worthy franchises like The First 48 while rolling out dedicated channels for Shark Tank, NYPD Blue, and Law & Order. The latter marked a milestone: the first FAST channel exclusively dedicated to a single series within Dick Wolf’s production universe.

Original programming adds another layer of stickiness. Honest Renovations earned renewal for a fourth season based on strong viewership metrics, while upcoming titles such as NFL Hometown Eats tap into live sports fandom—a perpetually engaging audience segment. Sports content, in particular, is proving its mettle: NFL Zone visits surged more than 300% year-over-year during the kickoff week, simultaneously driving both viewing duration and subscription trial sign-ups.

The Advertising Advantage: Premium Inventory Meets Verified Trust

Higher streaming hours strengthen Roku’s core business model by supplying advertisers with premium, scaled inventory. Integration with Amazon DSP and Trade Desk has expanded advertiser reach across the upper funnel, while Roku Ads Manager continues attracting small and mid-market businesses seeking accessible, effective CTV solutions.

Trust has become a competitive differentiator. Roku’s partnership with DoubleVerify has blocked billions of fraudulent ad requests across connected television, raising measurement standards for both home screen placements and native formats. For advertisers, this translates to cleaner ROI; for Roku, it reinforces platform credibility.

The Competitive Landscape: Where Netflix and Amazon Fall Short

Netflix dominates global streaming hours through premium originals, yet monetizes primarily through subscriptions. Viewing time supports churn reduction but doesn’t directly expand advertising inventory. Amazon, via Fire TV, emphasizes engagement metrics and leverages retail data to enhance advertising precision—but that engagement ultimately serves a broader ecosystem play rather than concentrated platform revenue.

Roku operates in a different strategic universe: within its walls, streaming hours equal ad units, subscription discovery moments, and direct revenue correlation. In the U.S. market specifically, this model creates advantages competitors struggle to replicate.

Valuation and Forward Outlook

ROKU shares have climbed 32.7% over the past six months, outperforming the Broadcast Radio and Television industry’s 8.1% decline and the Consumer Discretionary sector’s 3.5% drop. At a forward 12-month Price/Sales ratio of 3.05X against the industry average of 4.3X, Roku trades at a relative discount despite its accelerating fundamentals.

Consensus estimates for Q4 2025 earnings sit at 28 cents per share—a notable turnaround from the prior-year quarter’s 24-cent loss. Roku carries a Zacks Rank #2 (Buy) rating, signaling analyst confidence in continued momentum as streaming hours translate into revenue growth.

The core thesis remains intact: as linear television continues its structural decline, every hour gained within Roku’s ecosystem represents captured advertising value and expanding subscriber discovery potential across the entire universe of streaming content.