Roku launches free, ad-supported movie channel

Streaming device maker Roku Inc. on Wednesday said it has launched its own channel on the Roku platform. Whereas Roku devices generally support streaming apps from other companies, such as Netflix Inc. , Amazon.com Inc , Time Warner Inc-owned HBO and AT&T Inc.'s DirecTV Now, Roku will now have its own branded service available on Roku devices for free. Roku has capitalized on the rise of cord-cutting and an intensifying streaming TV landscape. The company filed for an initial public offering with the Securities and Exchange Commission last Friday, seeking $100 million in funding. Roku's new streaming channel will feature a collection of Hollywood films with no subscription, fee or logins required. Roku plans to make its money with an ad-supported model, much like watching a movie on TNT. But Roku says it plans to have, on average, about half of the ads per programming hour compared to traditional TV. "With the Roku Channel, we're responding to consumer demand and helping content publishers deliver content through a new experience that makes finding free entertainment easy," said head of programming at Roku, Rob Holmes.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.