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Roku CFO Steve Louden says it’s in a good position in ad-based video

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Roku isn’t worried about Amazon or anyone else horning in on its cash cow.

The electronics maker has transformed itself in recent years into an advertising business, thanks in no small part to the Roku Channel, an advertising-supported free streaming video service that’s available on Roku devices and through the web. Last month, though, Amazon launched a rival service called Freedive from its IMDb unit that threatens to steal viewers and ad dollars from Roku’s offering.

But that’s not how Steve Louden, Roku’s chief financial officer, sees it. Amazon’s entry — along with similar services from YouTube, Vudu, and others — just serve as “validation” for the Roku Channel and the ad-supported streaming business in general.

“We’re strong supporters of ad-supported content,” Louden told Business Insider in an interview on Thursday, just after the company reported its fourth-quarter results.

Read this:Amazon’s got its eyes set on yet another market — and one high-flying upstart should be worried

Roku topped analyst expectations as revenue from its platform business — which includes its advertising sales — jumped 77% from the holiday period of 2017.

Roku is in “a strong position”

The streaming video company is in a better position than many of its rivals to capitalize on ad-supported video market, Louden said. Its control of not just a streaming channel, but a streaming media platform — through its Roku streaming boxes and smart televisions that run its operating system — gives it important data on users’ viewing habits that competitors don’t have, he said. Through its platform, Roku also has the ability to steer viewers to the Roku Channel and other places that run its video ads.

“That puts us in a strong position,” he said.

Amazon too has its own platform in the form of its Amazon Fire TV devices, and it has plenty of data on viewing habits through that, its Amazon Fire tablets, and its Prime Video service. But Louden seemed unconcerned, suggesting that Amazon and many of Roku’s other competitors can’t fully match up with it. Roku can offer advertisers both the data they need to target their ads and a large viewership for them.

“That’s where a lot of folks have gaps,” he said.

Here’s what Roku reported and how it compared with Wall Street’s expectations:

  • Fourth-quarter (Q4) revenue: $275.7 million. Analysts had forecast $262.4 million.
  • Q4 earnings per share (EPS): 5 cents. Wall Street was expecting 3 cents a share.
  • First-quarter (Q1) revenue (company guidance): $185 million to $190 million. Analysts had projected $188.8 million.
  • Q1 EPS (guidance): Roku forecast that it will lose $28 million to $32 million, which works out to a per-share loss of 23 to 26 cents, assuming its share count stays stable. Wall Street was forecasting a loss of 12 cents a share.
  • 2019 full-year revenue (guidance): $1 billion to $1.025 billion. Analysts had forecast for $985.4 million.
  • 2019 EPS (guidance): The company projected a loss of between $80 million and $90 million, which is about 65 cents to 73 cents a share, assuming its share count remains the same. Analysts had predicted a full-year loss of 23 cents a share.

Roku’s stock jumped $2.72, or 5%, to $54.20 in after-hours trading. Its shares closed regular trading off $2.16, or 4%, to $51.48.

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Putin wants his own private internet

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New Russian laws could soon isolate the country’s Runet from the rest of the internet as it seeks to tighten its grip on the information that flows in and out of the country.

A new bill, backed by President Vladimir Putin and Moscow lawmakers, is currently being pushed through parliament which would create a single command post from which local authorities can manage and even halt information flowing across the internet in Russia.

The country’s so called “Sovereign Internet” bill is being portrayed by Putin as a defensive response to the Trump Administration’s new cyber strategy that would allow the US to launch offensive measures against Russia and any other nation states known for committing nefarious activities online.

Andrei Soldatov, author of “The Red Web: The Kremlin’s Wars on the Internet”, told Bloomberg that he thinks the law isn’t aimed at foreign threats but at quelling civil unrest, saying:

“This law isn’t about foreign threats, or banning Facebook and Google, which Russia can already do legally. It’s about being able to cut off certain types of traffic in certain areas during times of civil unrest.” 

Sovereign internet

The law, currently in draft form, was co-authored by KGB veteran Andrei Lugovoi who’s wanted in the UK for the murder of a renegade agent, is actually a mixture of several bills, some of which have been in development for years.

According to Putin, the ultimate goal is to ensure that the Runet continues to function in the event that the US tries to block Russia from accessing the rest of the internet.

If the bill does pass, the country would install special boxes with tracking software at the thousands of exchange points that link it to the rest of the web. These units would feed data into a central nerve center from which regulators could analyze web traffic and reroute traffic that they do not deem appropriate for the Russian populace.

Russian censorship has grown stronger in recent years and if Putin has his way, the country’s internet will soon resemble that of China’s where access to the outside web is blocked by the Great Firewall.

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The Internet Has Become A ‘Completely Out-Of-Control Monster,’ Warns Successor Of Man Who Created It

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Nearly 30 years ago a group of scientists at a Swiss physics institution came up with a novel idea to share data and work between themselves across the globe. The groundbreaking concept was the brainchild of Sir Tim Berners-Lee, whose vision for a “decentralized information management system” eventually gave birth to the world wide web.

Fast forward three decades and the internet has invaded all corners of the globe and governs all areas of life. It has become a power without equal. Some have suggested it has become a Frankenstein’s monster which needs to be reined in, and fast

One such person is Francois Fluckiger, the man who would become Sir Tim’s successor at CERN, the European Organization for Nuclear Research.

The Daily Mail reports that Fluckiger believes fake news, privacy threats, and online bullying have all conspired to turn the internet into a “completely out-of-control monster.”

When Sir Tim left CERN’s web team in 1994, Fluckiger picked up the reins. He has since retired, and although he has hailed the web as one of the three major inventions of the 20th century, he believes it has morphed into something almost unrecognizable from its early days.

“One has to ask oneself if we did not, in the end, create a completely out-of-control monster,” said Fluckiger.

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Bali’s silent day: No flights, internet on New Year

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Bali’s airport will close for 24 hours, the internet will be turned off and streets emptied as the island in Indonesia observes its New Year with an annual day of silence.

‘Nyepi’ begins at 6 AM on Thursday, clearing beaches and all public spaces of people except for special patrols to ensure silence is observed. For the second year, phone companies will turn off the mobile internet on the island, home to more than four million people.

Balinese will stay indoors, covering windows and keeping lights off for the day of reflection.

“A day of silence to mark Saka (Balinese calendar) New Year for us is an opportunity to restart life with a pure heart,” said Wayan Gota, a hotel manager in Kuta, one of the island’s tourist hotspots.

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