Roku Has Very Successfully Built a Connected TV Platform Integral to the Streaming Industry

Roku provides the most-used streaming operating system in the US through the streaming devices and televisions that it manufactures or licenses its name and software to. Roku’s strategy is to remain a leading provider of streaming devices by maintaining low prices and accepting losses in its devices segment. It intends to then drive profits from Roku user accounts. We had been skeptical that this strategy would be successful, but user monetization on its platform is easily making up for losses on devices, and we believe Roku has the potential to retain many users even if they switch to a different connected TV device.