Roku & Competition
Roku feels like a business being cannabalized by competitors with deeper pockets and tall vertical integration. For example, Amazon or Apple produce hardware and the software running on it and the media running on the software. While Roku does produce it's originals, it is not as keenly invested in pushing it to gain mindshare except to allow more space for their ads.
But Roku also leverages the fact that it is not as vertically integrated to create values where its competitors can't in a couple of ways:
- allowing conflicting ads. Where Amazon would be reluctant to advertise the new Netflix show since that would cannabalize Prime Video, Roku has less qualms about this.
- self-incentivizing building a better TV experience across the board. Google or Apple may want to push their brand of TV, which is less the case with Roku.
I found this interesting while listening to How I Built This, Anthony Wood and Roku