New data shows that Roku is extending its lead in the streaming player market in the US. The company’s secret weapon is its smart TV partner, TCL. However, TCL maybe helping sell more Roku smart TVs it is contributing less than it should to Roku’s core business.
Chapter 1: Roku leads US streaming media market (0:20)
New data from Strategy Analytics show that Roku powered devices hold a big lead in the US streaming media player business. The company’s front-runner status is forecast to extend by the end of the year.
Chapter 2: Smart TVs power Roku’s leadership position (2:00)
Roku licenses its software platform to TV manufacturers like TCL and Funai. The relationship is paying off in a big way, as TCL became the largest provider of TVs in the US market in Q1 2019.
However, the Roku doesn’t judge itself by the number of Roku-powered devices that it has delivered. Active Roku users are far more critical as they help drive ad revenue, the primary goal of the company. How is TCL doing at increasing active users?
Chapter 3: Do smart TV wins result in active user growth? (4:20)
Looking at Roku financial data, it seems like most of the gain in active users came from new Roku sticks and set-top boxes. Smart TVs seems to have contributed far less than the big TV shipment numbers would suggest. Why is this?