Roku says its ads aren’t meant to be ‘interruptive’ after controversial test

Roku faced controversy after a limited test where an ad for Moana 2 started playing as soon as devices were powered on, prompting customers to threaten to ditch their devices.
Roku users have come to accept ads as part of the deal for inexpensive hardware, but a full-screen takeover sparked a stronger reaction from customers.
The company’s business model relies heavily on ad revenue, which will become even more important due to tariffs threatening to disrupt Roku’s hardware costs.
Roku has since acknowledged that its ads are not meant to be “interruptive” and is dialing back the approach after customer backlash.
The company’s latest product event focused on new streaming sticks, a 2025 TV lineup, and other updates, with no mention of ads during the presentation.

Roku founder and CEO Anthony Wood during the company’s April 23rd product event in New York City.

Last month, Roku ensnared itself in controversy after customers quickly complained about a limited test where an advertisement for Moana 2 started playing as soon as the company’s products were powered on. Across Reddit and other social media channels, people threatened to ditch their devices if Roku repeated such an experiment. The message, at least from some customers, was clear: dial it back.

Roku users have come to accept ad banners on the homescreen and in other areas of the OS in exchange for inexpensive hardware. There are sponsored items scattered throughout the company’s signature Roku City screensaver. If you want a $30 or $40 streaming player, ads are just part of the deal, and they’re vital to Roku’s business. Ad revenue will grow even more important as tariffs threaten to disrupt Roku’s hardware costs. But a full-screen takeover stirred an angrier, more powerful reaction.

So after today’s product event concluded, I briefly chatted with Jordan Rost, who leads ad marketing at Roku, about the kerfuffle. Ads weren’t mentioned at any point in the presentation, which focused on Roku’s latest streaming sticks, 2025 TV lineup, new battery-powered smart …

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Q. What was the controversy surrounding Roku’s latest test?

A. A limited test where an advertisement for Moana 2 started playing as soon as the company’s products were powered on, prompting customers to complain and threaten to ditch their devices.

Q. How did customers react to the test on social media?

A. Customers quickly complained about the test on Reddit and other social media channels, with some threatening to cancel their subscriptions if Roku repeated such an experiment.

Q. What is a common trade-off for Roku users in exchange for inexpensive hardware?

A. Ad banners on the homescreen and in other areas of the OS, which are scattered throughout the company’s signature Roku City screensaver.

Q. Why are ads important to Roku’s business?

A. Ad revenue will grow even more important as tariffs threaten to disrupt Roku’s hardware costs.

Q. What was the focus of Roku’s product event after the controversy?

A. The presentation focused on Roku’s latest streaming sticks, 2025 TV lineup, and new battery-powered smart devices.

Q. Who leads ad marketing at Roku?

A. Jordan Rost is the lead for ad marketing at Roku.

Q. Did ads get mentioned during the product event?

A. No, ads were not mentioned at any point in the presentation.

Q. What was the outcome of the controversy surrounding the test?

A. The message from customers was clear: dial it back, suggesting that Roku should reduce its aggressive advertising tactics.

Q. Why are tariffs threatening to disrupt Roku’s hardware costs?

A. Tariffs are expected to increase the cost of producing Roku’s hardware.

Q. What is a key aspect of Roku’s business model?

A. Ad revenue is a vital part of Roku’s business, and it will grow even more important in the future due to potential disruptions in hardware costs.