Roku in collaboration with Shopify

Roku Inc. (NASDAQ: ROKU) shares opened today with an increase of around 5.0% after the streaming media company announced a new partnership with Shopify Inc. (NYSE: SHOP).

Here’s what we know so far: viewers will now be able to conveniently make purchases in the online store directly from their televisions.

They will be able to pay for the purchase using Roku Pay, as stated in the press release. According to Peter Hamilton, Senior Director of Advertising Innovation at Roku Inc.:

“This is a great example of Roku’s unique position as a platform to make advertisers seamless during the viewer’s journey, from start to purchase completion.”

Roku’s shares are now up nearly 100% since the beginning of this year. However, the California-based company remains one of the favorites of renowned investor Cathie Wood (read more).

What are the benefits for Shopify advertisers?

Working with Roku will also allow Shopify advertisers to collect more data and insights to better analyze purchasing trends. Mani Fazeli from the e-commerce company stated today:

“By collaborating with Roku to make Shopify Checkout available through new channels, we are making it easier for more brands to drive deeper engagement and reach new audiences.”

The press release named Ergatta, True Classics, and Olly as initial advertising partners. The initiative is based on “Action Ads,” a platform that directly connects consumers with advertisers.

Roku is expected to report its second-quarter results on July 27. According to consensus estimates, the company will have a loss of $1.21 per share this quarter compared to 82 cents per share last year.