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  5. ROKU: Can you give us your perspective both on the shop and the Roku side of this deal who benefits from what and which one do you prefer? [Roku Inc.]
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Q: Can you give us your perspective both on the shop and the Roku side of this deal who benefits from what and which one do you prefer?

Thanks,

Sheldon
Asked by Sheldon on July 12, 2023
5i Research Answer:

ROKU TV viewers can now press one button to buy from SHOP merchants, while they are watching TV. We would consider it a good arrangement, but with ROKU much smaller than SHOP it likely provides more leverage to ROKU. For SHOP, it is another avenue for merchants to buy, but will benefit some more than others (different products have different 'impluse' buy points). We don't think it will actually be material to either company, at least for some time. But it enhances share for SHOP and provides some revenue share to ROKU. The ROKU stock pop looks to be a bit much on this news only.

Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in ROKU.

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