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Roku ROKU and Paramount Global PARA are both competing for dominance in the ad-supported streaming space, but their recent performances paint contrasting pictures. Roku continues to scale its platform and expand its advertising toolkit, while Paramount Global leans on franchise content and viewer engagement across Paramount+ and Pluto TV.
With advertising dynamics shifting and investors seeking resilient growth in streaming, the key question is: Which stock offers better upside in 2025? Let’s delve deeper and compare Roku and Paramount’s first-quarter 2025 results and ad strategies to determine which company is better positioned for the road ahead.
The Case for ROKU Stock
Roku’s ad-supported streaming business continued to deliver strong momentum in the first quarter of 2025, driven by its expanding platform scale and innovative advertising strategies. Platform revenues grew 17% year over year to $881 million, supported by both video advertising and streaming services distribution. Roku’s reach now exceeds half of all U.S. broadband households, with its Home Screen serving as the lead-in for TV for more than 125 million people daily.
A key highlight was the growth of The Roku Channel, which became the #2 app on the Roku platform in the United States by engagement. Streaming hours for the channel surged 84% year over year. More than 85% of its viewing came through Roku’s curated experience, showcasing the effectiveness of Roku’s AI-powered content discovery and interface features.
Ad activities outside the Media & Entertainment vertical outperformed the U.S. OTT ad market. The company has improved its ad measurement capabilities through integrations with platforms like Adobe and INCRMNTAL, and made TV advertising more accessible to small businesses via its self-service Roku Ads Manager.
To support advertisers of all sizes, Roku has invested in tools that allow seamless buying of Roku Media through direct insertion orders, preferred DSP partners, or self-serve solutions. This flexibility, along with innovative formats like shoppable ads and performance-driven targeting, is strengthening Roku’s position as a leading ad-supported streaming platform.
The Case for PARA Stock
Paramount’s ad-supported streaming ecosystem delivered mixed results in the first quarter of 2025. Paramount+ global watch time per user increased 17% year over year, and Pluto TV achieved its highest consumption ever with a 26% year-over-year increase in global viewing time. The company highlighted strong audience engagement, driven by hits like 1923, Dexter: Original Sin, and the global premiere of MobLand, which became Paramount+’s biggest global series launch ever.
The company continues to invest in premium originals and franchise extensions. These content-led efforts are aimed at increasing monetization over time, supported by expanding ARPU and lower churn.
However, the advertising performance within the digital video segment revealed emerging challenges. Direct-to-consumer advertising revenues declined 9% year over year. The decline was largely attributed to increased supply in digital video inventory, which created a softer pricing environment, especially affecting Pluto TV, which has the greatest exposure to the indirect ad marketplace.
The company acknowledged that supply-demand dynamics have yet to stabilize. While it remains confident in future monetization, it noted that the current digital advertising softness has yet to show signs of meaningful recovery.