Enlarge/ Motion smoothing was making images uncanny and weird long before AI got here.
Aurich Lawson | Getty Images | Roku
Roku TV owners have been introduced to a number of annoyances recently through the software update pipeline. There was an arbitration-demanding terms of service that locked your TV until you agreed (or mailed a letter). There is the upcoming introduction of ads to the home screen. But the latest irritation hits some Roku owners right in the eyes.
Reports on Roku’s community forums and on Reddit find owners of TCL HDTVs, on which Roku is a built-in OS, experiencing “motion smoothing” without having turned it on after updating to Roku OS 13. Some people are reporting that their TV never offered “Action Smoothing” before, but it is now displaying the results with no way to turn it off. Neither the TV’s general settings, nor the specific settings available while content is playing, offer a way to turn it off, according to some users.
“Action smoothing” is Roku’s name for video interpolation, or motion smoothing. The heart of motion smoothing is Motion Estimation Motion Compensation (MEMC). Fast-moving video, such as live sports or intense action scenes, can have a “juddery” feeling when shown on TVs at a lower frame rate. Motion smoothing uses MEMC hardware and algorithms to artificially boost the frame rate of a video signal by creating its best guess of what a frame between two existing frames would look like and then inserting it to boost the frame rate.
When it works, a signal looks more fluid and, as the name implies, smooth. When it is left on and a more traditional signal at 24 or 30 frames per second is processed, it works somewhat too well. Shows and films look awkwardly realistic, essentially lacking the motion blur and softer movement to which we’re accustomed. Everything looks like a soap opera or like you’re watching a behind-the-scenes smartphone video of your show. It’s so persistent an issue, and often buried in a TV’s settings, that Tom Cruise did a whole PSA about it back in 2018.
Ars has contacted Roku for comment and will update this post with a response. When affected Roku TVs regain their ability to keep motion smoothing at bay, the setting is typically located in the “Expert Settings” area of the TV or by enabling “Movie” mode from the quick settings.
Roku CEO Anthony Wood disclosed plans to introduce video ads to the Roku OS home screen. The news highlights Roku’s growing focus on advertising and an alarming trend in the streaming industry that sees ads increasingly forced on viewers.
As spotted by The Streamable, during Roku’s Q1 2024 earnings call last week, Wood, also the company’s founder and chairman, boasted about the Roku OS home screen showing users ads “before they select an app,” avoiding the possibility that they don’t see any ads during their TV-viewing session. (The user might only use Roku to access a video streaming app for which they have an ad-free subscription.)
Wood also noted future plans to make the Roku home screen even more ad-laden:
On the home screen today, there’s the premier video app we call the marquee ad and that ad traditionally has been a static ad. We’re going to add video to that ad. So that’ll be the first video ad that we add to the home screen. That will be a big change for us.
Wood’s comments didn’t address the expected impact on the Roku user experience or whether the company thinks this might turn people off its platform. In December, Amazon made a similar move by adding autoplay video ads to the home screen of the Fire OS (which third-party TVs and Amazon-branded Fire TV sets and streaming devices use). Fire OS users who disable the ads’ autoplay function will still see ads as “a full-screen slide show of image ads,” per AFTVnews. Some users viewed the introduction as an intrusive step that went too far, and Roku may hear the same feedback.
During Roku’s earnings call, Wood also said the company is testing “other types of video ad units” and is looking for more ways to bring advertising to the Roku OS home screen.
This comes after recent efforts to expand ad presence on Roku OS, including through new FAST (free ad-supported streaming TV) channels and by putting content recommendations on the home screen for the first time, per Wood, who said the personalized content row “will be, obviously, AI-driven recommendations.”
“There’s lots of ways we’re working on enhancing the home screen to make it more valuable to viewers but also increase the monetization on the home screen,” he said.
Roku’s revenue rise
Roku saw its average revenue per user (ARPU) drop from $41.03 in Q3 of its 2023 financial year to $39.92 in Q4 2023 (in Q4 2022, the company reported an ARPU of $41.68). Last week, Roku reported that ARPU, a key metric for the streaming industry these days, rose to $40.65 in Q1 2024. Meanwhile, Roku’s active account count rose by 1.6 million users from the prior quarter to 81.6 million.
“Roku has a direct relationship with more than 81 million Streaming Households, and we are deepening relationships with third-party platforms, including [demand side platforms], retail media networks, and measurement partners. Our business remains well positioned to capture the billions of dollars in traditional TV ad budgets that will shift to streaming,” an April 25 letter to shareholders [PDF] authored by Wood and Roku CFO Dan Jedda reads.
Like many streaming companies, a shift toward ads has resulted in higher revenue potential and user discontent. In its Q1 2024 results, Roku reported that revenue for its Devices business reached $126.5 million, compared to $754.9 for its Platform business, which drives most of its revenue through ad sales, representing a 19 percent year-over-year (YoY) increase. Overall, revenue rose 19 percent YoY to $882 million, and Roku’s gross profit grew 15 percent YoY to $388 million.
But growing revenue doesn’t equate to an improved user experience. For example, an Accenture survey of 6,000 “global consumers” noted by The Streamable found that 52.2 percent of participants thought that streaming platform-recommended content “did not match their interests.” Similarly, an October TiVo survey of 4,500 viewers in the US and Canada ranked “streaming apps / home screen / carousel ads” as the fourth most popular method of content discovery, after word of mouth, commercials aired during other shows, and social media. While Roku is a budget brand associated with more affordable TVs and streaming devices, excessive ads could make people reconsider the true price of these savings.
Despite people’s ad aversion, Roku intends to find more ways to drive advertising opportunities. Among those ideas being explored is the ability to show ads over anything plugged into the TV.
Everyone with a Roku TV or streaming device will eventually be forced to enable two-factor authentication after the company disclosed two separate incidents in which roughly 600,000 customers had their accounts accessed through credential stuffing.
Credential stuffing is an attack in which usernames and passwords exposed in one leak are tried out against other accounts, typically using automated scripts. When people reuse usernames and passwords across services or make small, easily intuited changes between them, actors can gain access to accounts with even more identifying information and access.
In the case of the Roku attacks, that meant access to stored payment methods, which could then be used to buy streaming subscriptions and Roku hardware. Roku wrote on its blog, and in a mandated data breach report, that purchases occurred in “less than 400 cases” and that full credit card numbers and other “sensitive information” was not revealed.
The first incident, “earlier this year,” involved roughly 15,000 user accounts, Roku stated. By monitoring these accounts, Roku identified a second incident, one that touched 576,000 accounts. These were collectively “a small fraction of Roku’s more than 80M active accounts,” the post states, but the streaming giant will work to prevent future such stuffing attacks.
The affected accounts will have their passwords reset and will be notified, along with having charges reversed. Every Roku account, when next requiring a login, will now need to verify their account through a link sent to their email address. Alternatively, one can use the device ID of any linked Roku device, according to Roku’s support page. (Forcing this upgrade yourself is probably a good idea for past or present Roku owners.)
Security blog BleepingComputer reported around the time of the incident that breached Roku accounts were sold for as little as 50 cents each and likely obtained using commonly available stuffing tools that bypass brute-force protections through proxies and other means. BleepingComputer reported that “a source” tied Roku’s recent updates to its Dispute Resolution Terms, which all but locked Roku devices until a customer agreed, to the fraudulent activity. Roku told BleepingComputer that the two were not related.
Roku TV sets come with ads. Generally, these are restricted to Roku’s home and menu screens, its screensavers, and its first-party video channels, and once you start playing video, the only ads you’ll see are the ones from the service you’re streaming from. That said, Roku TVs have shown ads atop live TV before.
Now, the company is apparently experimenting with ways to show ads over top of even more of the things you plug into your TV. A patent application from the company spotted by Lowpass describes a system for displaying ads over any device connected over HDMI, a list that could include cable boxes, game consoles, DVD or Blu-ray players, PCs, or even other video streaming devices. Roku filed for the patent in August 2023 and it was published in November 2023, though it hasn’t yet been granted.
The technology described would detect whether content was paused in multiple ways—if the video being displayed is static, if there’s no audio being played, if a pause symbol is shown anywhere on screen, or if (on a TV with HDMI-CEC enabled) a pause signal has been received from some passthrough remote control. The system would analyze the paused image and use metadata “to identify one or more objects” in the video frame, transmit that identification information to a network, and receive and display a “relevant ad” over top of whatever the paused content is.
Enlarge/ The proposed Roku device would include multiple modules dedicated to detecting and analyzing onscreen content and inserting ads over top of an existing video stream.
Roku
This theoretical Roku TV’s internal hardware would be capable of taking the original source video feed, rendering an ad, and then combining the two into a single displayed image. Combining those video streams could enable both static or animated ads, according to the patent.
Patents are just patents. A filed and granted patent isn’t the same thing as a concrete plan to actually implement the technology described in the patent. We could see this feature come to future Roku TV sets exactly as described, or we could never hear about it again. Everything from the cost of implementing the feature, to difficulty making it work in real life the way it works on paper, to user and partner backlash could dissuade Roku from putting this into practice.
But Roku the company is highly motivated to figure out more ways to make more money from more ads on Roku devices. Among the business risks disclosed on Roku’s financial filings from its 2023 fiscal year (PDF), the company says that its “future growth depends on the acceptance and growth of streaming TV advertising and advertising platforms.”
Enlarge/ Roku’s proposed workflow for detecting paused content and displaying an ad on top of it.
Roku
If implemented as described, this system both gives Roku another place to put ads, and gives the company another source of user data that can be used to encourage advertisers to spend on its platforms. Roku also anticipates that the general shift toward ad-supported streaming tiers that we’ve seen in the last couple of years will “shift… ad dollars from traditional TV to streaming,” (PDF) and having more places to put ads will put Roku in a better position to capitalize on that shift.
It’s unclear whether this kind of feature could be enabled on currently supported Roku TVs with a software update, or if it would require a newer set with newer hardware in it. It seems as though a Roku TV that was capable of this kind of ad insertion would need more sophisticated internal hardware than most current sets currently come with—this is the same company that feuded with Google a few years back because it didn’t want to pay for more-expensive chips that could decode Google’s AV1 video codec.
Roku customers are threatening to stop using, or to even dispose of, their low-priced TVs and streaming gadgets after the company appears to be locking devices for people who don’t conform to the recently updated terms of service (ToS).
This month, users on Roku’s support forums reported suddenly seeing a message when turning on their Roku TV or streaming device reading: “We’ve made an important update: We’ve updated our Dispute Resolution Terms. Select ‘Agree’ to agree to these updated Terms and to continue enjoying our products and services. Press to view these updated Terms.” A large button reading “Agree” follows. The pop-up doesn’t offer a way to disagree, and users are unable to use their device unless they hit agree.
Customers have left pages of complaints on Roku’s forum. One user going by “rickstanford” said they were “FURIOUS!!!!” and expressed interest in sending their reported six Roku devices back to the company since “apparently I don’t own them despite spending hundreds of dollars on them.”
Another user going by Formercustomer, who, I suspect, is aptly named, wrote:
So, you buy a product, and you use it. And they want to change the terms limiting your rights, and they basically brick the device … if you don’t accept their new terms. … I hope they get their comeuppance here, as this is disgraceful.
Roku has further aggravated customers who have found that disagreeing to its updated terms is harder than necessary. Roku is willing to accept agreement to its terms with a single button press, but to opt out, users must jump through hoops that include finding that old book of stamps.
To opt out of Roku’s ToS update, which primarily changes the “Dispute Resolution Terms,” users must send a letter to Roku’s general counsel in California mentioning: “the name of each person opting out and contact information for each such person, the specific product models, software, or services used that are at issue, the email address that you used to set up your Roku account (if you have one), and, if applicable, a copy of your purchase receipt.” Roku required all this to opt out of its terms previously, as well.
But the new update means that while users read this information and have their letter delivered, they’re unable to use products they already paid for and used, in some cases for years, under different “dispute resolution terms.”
“I can’t watch my TV because I don’t agree to the Dispute Resolution Terms. Please help,” a user going by Campbell220 wrote on Roku’s support forum.
Based on the ToS’s wording, users could technically choose to agree to the ToS on their device and then write a letter saying they’d like to opt out. But opting into an agreement only to use a device under terms you don’t agree with is counterintuitive.
Even more pressing, Roku’s ToS states that users only have “within 30 days of you first becoming subject to” Roku’s updated terms, which was February 20, to opt out. Otherwise, you’re opted in automatically.
Archived records of Roku’s ToS website seem to show the new ToS being online since at least August. But it was only this month that users reported that their TVs were useless unless they accepted the terms via an on-screen message. Roku declined to answer Ars Technica’s questions about the changes, including why it didn’t alert users about them earlier. But a spokesperson shared a statement saying:
Like many companies, Roku updates its terms of service from time to time. When we do, we take steps to make sure customers are informed of the change.
What Roku changed
Customers are criticizing Roku for aggressively pushing them to accept ToS changes. The updates focus on Roku’s terms for dispute resolution, which prevent users from suing Roku. The terms have long forced a described arbitration process for dispute resolution. The new ToS is more detailed, including specifics for “mass arbitrations.” The biggest change is the introduction of a section called “Required Informal Dispute Resolution.” It states that except for a small number of described exceptions (which include claims around intellectual property), users must make “a good-faith effort” to negotiate with Roku, or vice versa, for at least 45 days before entering arbitration.
Roku is also taking heat for using forced arbitration at all, which some argue can have one-sided benefits. In a similar move in December, for example, 23andMe said users had 30 days to opt out of its new dispute resolution terms, which included mass arbitration rules (the genetics firm let customers opt out via email, though). The changes came after 23andMe user data was stolen in a cyberattack. Forced arbitration clauses are frequently used by large companies to avoid being sued by fed-up customers.
Roku’s forced arbitration rules aren’t new but are still making customers question their streaming hardware, especially considering that there are rivals, like Amazon, Apple, and Google, that don’t force arbitration on users.
Based on comments in Roku’s forums, some users were unaware they were already subject to arbitration rules and only learned this as a result of Roku’s abrupt pop-up.
But with the functionality of already-owned devices blocked until users give in, Roku’s methods are questionable, and Roku may lose customers over it. Per an anonymous user on Roku’s forum:
