Roku is the highly strategic, highly independent, and foundational leader of the global 'Streaming Wars'. Based in California, they are the large, invisible tollbooth of connected television. While Netflix and Disney spend large billions fighting to make the best TV shows, Roku executes a highly effective, alternative strategy: they control the television itself. They build highly cheap streaming sticks and, more importantly, license their operating system directly to large TV manufacturers (like TCL or Hisense). They are the absolute default 'home screen' for millions of American televisions.
Roku operates a highly optimized B2C and B2B Digital Platform model. 1. Hardware/Player (The acquisition engine): Selling cheap sticks to capture the user. 2. Platform Revenue (The absolute profit engine): Roku acts as the large digital gatekeeper. If an independent streaming app wants to be on the Roku home screen, they have to pay Roku. 3. The Roku Channel: In a highly aggressive pivot, they launched their own free, ad-supported streaming app (FAST channel), buying up cheap content (like the Quibi library) to sell TV ads directly, completely bypassing Netflix.