Stock in Roku rose sharply after it announced a new multi-year distribution extension deal with Amazon on Monday.
Terms of the agreement were not disclosed, but the new deal means the Amazon Prime Video app and IMDB TV content will remain available in Roku’s Channel Store. “Roku and Amazon have reached a multi-year extension for their distribution agreement. Customers can continue to access the Prime Video and IMDb TV apps on their Roku devices,” Roku said in a statement.
That news sent shares in Roku up $6.39, or 5 percent, to $132.11 in mid-morning trading on the NASDAQ Exchange. The new deal with Amazon comes as streaming video consumption is on the rise worldwide and Roku is looking to making continued smart TV share gains.
The bump in the share price also follows stock in Roku getting caught up in an overall NASDAQ market downdraft for tech stocks starting in late 2021. While Roku’s core physical product is streaming boxes and streaming sticks, in recent years it has shifted its focus to be on its streaming video platform, which powers those devices as well as a number of smart TV brands.
Roku’s platform business is powered by advertising, and has been the company’s primary growth engine over the past few years.
