(Bloomberg) -- Roku Inc. and Alphabet Inc.'s Google agreed to a multiyear contract extension that keeps YouTube and YouTube TV available on the Roku platform.
Roku has become increasingly valuable real estate for online services, with more than 56 million active customer accounts last quarter. Its users streamed 18 billion hours of content in the period.
“This agreement represents a positive development for our shared customers, making both YouTube and YouTube TV available for all streamers on the Roku platform,” Roku said in a statement Wednesday.
Shares of San Jose, California-based Roku jumped as much as 13% on the news.
“While details are scarce, the agreement should permit Roku to once again collect origination fees on new YouTube TV originations,” Stephens analyst Nicholas Zangler wrote in a note to investors. Having access to the YouTube app “will also deter customers from choosing an alternative TV/ [operating system] at the point of purchase,” he said.
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