By Dhirendra Tripathi
Investing.com -- Roku (NASDAQ:ROKU) stock gained 5% Monday after the company struck a multi-year extension of its distribution agreement with Amazon (NASDAQ:AMZN).
“Customers can continue to access the Prime Video and IMDb TV apps on their Roku devices,” Roku said in a release posted on its website.
Major apps such as Prime Video and YouTube being built into devices such as Roku televisions and streaming media players are a major selling point for the hardware.
The company had in early December struck a multi-year pact with YouTube, ending several months of discord between the two.
Roku removed the YouTube TV app from its channel store after the agreement for that app expired. YouTube, which has more than 2 billion monthly users, threatened to pull its main app from Roku, when the deal for the service was to end.
Roku and its subsidiaries together operate a streaming platform in two segments, Platform and Player. The company generates revenue from advertising, OS licensing, distribution fees, hardware and subscription sales.
Public fights over distribution agreements and splitting ad revenue have become common in the broadcast and streaming video fields.
At the end of the fourth quarter, Roku had more than 60 million active accounts.