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Can Roku Maintain Their Market Lead In The US?

Can Roku Maintain Their Market Lead In The US?

Roku has fired-up the streaming-device markets this year, expected to reach 1.5 billion by the end of 2020 surpassing competitors Amazon Fire TV and Apple TV.  The line of easy to set-up, low-cost digital players support leading streaming platforms and content all in one place through Smart TVs and OTT devices. Pushing the sale of its services during the course of the COVID-19 Pandemic lockdown, Roku has positioned its brand at the forefront of customer engagement.

So, how exactly has Roku maintained itself as Market Leader in the competitive environment?

An Ideal Business Model

It is Roku’s established business model that has earned dominance in the streaming device market.  Roku has inaugurated a model that serves the interest of clients and customers in all areas of the value chain. The mass amount of streaming content added to the Roku application has created a myriad circle of benefits, enabling new niche customer bases to enter the Roku marketplace.

An Established Player

Recent developments in streaming, from the introduction of Disney Plus and blockbuster streaming-originals advancing in the market highlight no signs of the streaming industry slowing.  Roku has maintained prolonged stock growth, last year seeing a 240% increase and continuing success at the face of the COVID-19 pandemic. Roku gains access to the majority of its revenue through advertising on its own Roku channel platform alongside, a subscription and pay-per-view take up via the multitude of streaming platforms in its device catalogue. Experiencing an 80% surge across their streaming hours on their devices in April, Roku has developed the perfect ecosphere to remain durable in a fluctuating market.

A Growing Customer Base

Roku has grown its customer base by 41% so far this year, harnessing 43 million active accounts as of 2020. Soaring up the market in the COVID-19 Pandemic lockdown, Roku has added $470 million in revenue with 95.5% set to have been from Ads and Commission based on viewership. Positioned as the leading SMART TV platform option for manufactures, and adding the successful release of the Roku SMART TV R7 that operates compatibility with AI speakers, Roku sits in a perfect environment to establish new customer bases for growth.

A Long-Term Maintenance?

As the leading giant of the SMART TV and OTT market for an extensive time, questions to whether Roku can maintain dominance is anticipated. Though the lockdown phase of the Pandemic helped accelerate Roku’s active customer base and revenue, as the economy gradually opens it is uncertain whether people will spend as much time streaming from home. Even With this ambiguity, it is clear continuing trends in Roku’s success are the core indicator that as a third-party streaming player Roku is here to stay on top.


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