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Roku Streaming Platform vs Smart TV Competition

Sep 28, 2017 → Jan 15, 2020 ROKU — Roku Inc. intermediate

Market Context & Analysis

Starting Price: $14.00

Roku IPOs as streaming platform leader. Smart TVs with built-in streaming threaten hardware business. But Roku's platform strategy succeeds—licensing OS to TV manufacturers. Active accounts reach 40M. Ad business booming as TV budgets shift digital. Platform monetization exceeds hardware.

Strong economy with cord-cutting accelerating. Streaming services proliferating. TV advertising shifting digital. Smart TV prices falling.

No major political factors. Streaming wars intensifying with Disney+, HBO Max launches.

Roku has 40M+ active accounts. Streaming hours growing. Licensing Roku OS to TV manufacturers brilliant. Ad business growing faster than hardware. Neutral platform carrying all services.

Cord-cutting secular trend. Roku seen as Switzerland—platform for all services. Questions about smart TV competition but platform strategy working. Ad shift from linear TV accelerating.

  • 40M+ active accounts growing
  • Licensing OS to TV manufacturers
  • Platform revenue exceeding hardware
  • Ad business capturing TV budget shift
  • Neutral platform for all streaming services
  • Streaming hours growing steadily
  • Smart TV threat addressed by becoming the OS

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