Roku
stock surged Tuesday after the streaming TV platform company said it was teaming with the e-commerce software company
Shopify
to allow viewers to buy products directly through their TVs from Shopify merchants.
Merchants who participate in the program can offer viewers the option to simply press “OK” on their Roku (ticker: ROKU) remote to learn more about an advertised product—and to make a purchase directly from their TV screen, checking out with the Roku Pay payments platform. The company said initial ad partners for the program include men’s apparel brand True Classics, connected rower company Ergatta, and the wellness brand Olly.
The program relies on a platform called “Roku Action Ads,” which gives consumers a way to directly connect with advertisers. Previous partners include Walmart (WMT) and DoorDash (DASH).
The idea of shopping from your couch, with remote in hand, isn’t new, and so far hasn’t generated a lot of activity. In 2006, Home Shopping Network began testing a service that allowed consumers to buy things they were seeing on their TVs with a remote. But the pairing between Roku and Shopify (SHOP) makes sense: many merchants with direct-to-consumer brands rely on Shopify’s e-commerce platform—and those same sellers often buy TV ads to reach consumers.
Roku shares have spiked 11.4% Tuesday to $75.62. Shopify is up 1.8% to $62.99.
Write to Eric J. Savitz at [email protected]
Read the full article here
