Roku may dominate the North American streaming market, but their recent financial success exposes serious problems with their approach.
Roku just reported impressive financial results for Q2 2025, with total revenue hitting $1.11 billion and platform revenue surging 18% year-over-year.
While these numbers look great on paper, they tell a troubling story about the streaming industry’s direction.
Roku is The Upselling Machine
Part of Roku’s business model revolves around a simple goal: getting you to pay for as many streaming services as possible. Their platform revenue of $975 million comes directly from taking cuts of subscription sign-ups and advertising dollars.
The company openly brags about driving “significant subscription growth” for over 20 partners through their home screen features.
Image from Roku’s Shareholder Message
This means every element of your Roku interface is designed to separate you from your money. Those “AI-powered content rows” aren’t helping you find great content – they’re pushing you toward paid subscriptions.
Ads Everywhere You Look
Roku’s advertising strategy has become increasingly aggressive and invasive. The company recently introduced “Pause Ads” that display commercials when you temporarily stop your content.
Obviously Roku users were not thrilled with the increased ad frequency. This comment is seen on their community forum.
Comment from Frustrated Roku User
The situation gets worse. Roku has filed patents for inserting ads over HDMI inputs, meaning they could potentially show advertisements over content from other devices connected to your TV. They’ve also tested ads that appear immediately when you turn on your television, before you even select an app.
These intrusive advertising tactics generate serious revenue for Roku, but they create a terrible user experience. Every pause, every power-on, and every menu navigation becomes an opportunity for the company to show you more ads.
Reddit Thread about Roku Ad Placements
Closed System, Limited Options
Unlike Android TV, Google TV, or even Fire TV devices, Roku runs on a completely closed operating system, meaning you can’t ‘jailbreak’ it.
You can’t install apps outside their official store, and you can’t modify the device to access additional content sources. This restriction keeps users trapped in Roku’s walled garden of streaming services.
While you can side-load apps on Fire TV devices or install APK files on Android TV boxes, Roku users have zero flexibility. The company wants complete control over your streaming experience because that control generates revenue.
Better Streaming Alternatives Exist
We recommend Android/Google TV devices over Roku for several reasons.
You can install third-party apps, customize the interface, and access content sources beyond official streaming services. Fire TV devices provide similar flexibility while maintaining easy access to popular apps.
These platforms also don’t force you into subscription-heavy ecosystems or bombard you with annoying ads during your viewing experience.
Final Thoughts
Roku’s financial success comes at users’ expense. Their closed system, aggressive upselling tactics, and invasive advertising make streaming more expensive and annoying than necessary.
Android TV, Google TV, and Fire TV devices provide better value by giving users control over their experience without constant ads and subscription pressure.
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For more information on this story, refer to Roku’s official Q2 Earnings Report (PDF) and their press release.
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