Roku overhauls OS with permanent ad space to boost monetisation
The update, rolling out automatically in the United States, aims to capitalise on $371 million in recent ad revenue, though users have criticised the intrusive design.
Roku has unveiled the most significant overhaul of its smart TV operating system in a decade, introducing a large, permanent advertising space on the right side of the home screen. The update, which is rolling out automatically to Roku TVs and streaming devices in the United States, represents a strategic shift designed to enhance monetisation and profitability for the platform.
The new interface dedicates the right-hand portion of the screen to ads, which remain visible as users navigate different menu sections. This space displaces the app tiles that previously occupied the area. The advertising content may include marketing for specific titles, such as the Apple TV+ series Ted Lasso, or unrelated commercial spots, including demonstrations of products like The Farmer’s Dog dog food.
Roku’s push for increased ad revenue follows a period of financial fluctuation. The company reported $371 million in advertising revenue in its most recent earnings, contributing to a gross profit of $584.1 million for its Platform business. In contrast, its devices business posted a loss of $19.1 million. CEO Anthony Wood has indicated that the new home screen is intended to increase monetisation over time by driving viewers toward subscriptions or ad-supported content.
Beyond the advertising block, the interface features a slimmer left sidebar with images replacing text. A new "Top Picks for You" section offers personalised recommendations, while "Quick Access" tiles utilise artificial intelligence to display the user’s most-used apps and shortcuts. A "Destinations" section has also been added, providing curated hubs for genres and moods that span multiple streaming services.
Despite the functional updates, the change has drawn criticism from users who view the prominent advertising as intrusive. Some users have expressed frustration with the AI-driven recommendations, preferring direct access to recently viewed content, a feature notably absent from the update. Roku VP of viewer product Preston Smalley noted that the proportion of paid versus programmed ads is not fixed and may evolve.
