Roku, the popular streaming platform, is aiming to challenge TV manufacturing giants with its new line of smart TVs. Despite the risks associated with entering the competitive market of TV manufacturing, Roku is confident about its prospects for profitability.
Roku has already achieved 70 million active accounts globally, which gives it a strong foundation to prioritize profitability rather than just focusing on market growth. The company is not intimidated by competitors who have been in the software and hardware business for longer than Roku. In fact, Roku claims that its TV operating system (OS) is superior to those of Google and Amazon because it was built exclusively for television.
Roku’s biggest opportunity lies in taking market share from other manufacturers, particularly LG, Samsung, and Vizio, who have also developed scaled operating systems for televisions. Currently, Roku claims that one in every three smart TVs sold in the US is a Roku-branded TV, and with the launch of its own TVs, the company expects its market share to continue growing.
To increase user engagement and prioritize discoverability, Roku has upgraded its voice-based search and entered sponsorship deals with streaming services like Disney and HBO. The company has also launched a sports hub on its home screen to help viewers quickly find out which network or app is airing a particular game.
Roku’s focus on engagement is expected to boost its average revenue per customer, especially when combined with the sales of its Roku TV units. The company is investing more time and resources into its user interface, particularly its Roku City screensaver, to help users find content and increase engagement.
While Roku’s claims about its market share and products are still untested, the company remains optimistic about its future growth and profitability. The success of its smart TVs will ultimately be determined once they hit the shelves in the spring.
In conclusion, Roku is aiming to compete with established TV manufacturing giants by introducing its own line of smart TVs. With a strong user base and confidence in its products, Roku is optimistic about its prospects for profitability and plans to take market share from other manufacturers. The company is focused on user engagement and discoverability to increase its average revenue per customer. Only time will tell if Roku’s smart TVs can deliver on their promises and successfully challenge the competition.
