Originally incubated inside Netflix before being spun out in 2008 by Anthony Wood, Roku launched the first dedicated Netflix streaming player and developed into North America's dominant connected-TV operating platform.
Roku operates a two-pronged business model: Devices (streaming sticks, boxes, soundbars, and Roku-branded TVs sold near cost to expand active streaming accounts) and Platform (digital advertising, ad-supported Roku Channel content, revenue-sharing on streaming subscriptions, billing services, and home screen advertising) which generates over 85% of total net revenue and the vast majority of gross profit.