Shares of Roku (NASDAQ: ROKU) are running 4.5% higher Tuesday morning at 10:29 a.m. ET after the streaming video platform came to an agreement with Warner Bros. Discovery (NASDAQ: WBD) to bring the studio's branded free, ad-supported TV (FAST) channels to the Roku Channel. Additionally, Roku and Warner Bros. have agreed to license some 2,000 hours of the studio's on-demand library programming, including hundreds of TV series and movies from HBO, HBO Max, Discovery Channel, HGTV, and Food Network.
Netflix (NASDAQ: NFLX) expects advertising to be a big part of its business. On its fourth-quarter earnings call, outgoing co-CEO Reed Hastings asked CFO Spence Neumann how many years it'll take the company to surpass Hulu's advertising business. The Hulu streaming service, controlled by Walt Disney (NYSE: DIS), had a 15-year head start on Netflix in advertising, and it has grown to become a leading seller of connected TV advertising in the United States.
Original programming drove momentum for one streaming platform, while another made a splash with movies.