Anthony Wood’s latest pivot, in the midst of the streaming media revolution, has been to bet the future of his streaming device company, Roku, on the very thing consumers are said to loathe: advertising
. But Wood’s latest pivot, in the midst of the streaming media revolution, has been to bet the future of his streaming device company, Roku, on the very thing consumers are said to loathe: advertising.
“Traditionally, the only way you would measure a TV ad is through Nielsen ratings, which could tell you roughly how many people have watched it,” Wood says. “Our measurement is very precise, where we can tell a company that out of everyone who saw your ad, 5% went to your website and bought something,” he explains. “We’re bringing the sort of technology that’s already been around for a while on the internet to the TV world.
Wood’s plan to cater to advertisers comes from an early failure. In the early 1990s, figuring there had to be a better way to record new episodes of his favorite TV show,than using VHS tapes, he came up with a DVR. The initial product, marketed as ReplayTV, was released in 1999 and cost around $1,000. Big mistake. Rival TiVo sold its boxes for reportedly under $500 and gobbled up market share.
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