Roku - An Underrated Market Leader

Updated: Jul 9, 2020

Netflix, Disney +, Hulu and other streaming companies have boomed. The traditional television consumer began switching over to streaming content, and this ignited a surge in investments into OTT platforms.

Disney acquired BamTech, which was re-branded to Disney +. Dish purchased a majority stake in Sling T.V., a now major OTT service for traditional channels. Amazon developed Amazon Prime. Hulu gained mainstream popularity through its content.

Roku is now the top distribution channel through which consumers view OTT services. Apple and Samsung, after establishing themselves as market leaders in the smartphone market, sold pre-installed mobile applications, increased prices, and even received free advertising from their distributors.

Roku now controls upwards of 30% of the connected T.V. market in the United States, continuously building, testing, and launching new OTT specific offerings. Roku has returned over 300% since the beginning of 2019, down 5% YTD. I expect Roku to capitalize on their market positioning and gain significantly throughout the rest of 2020.