Roku, Inc. (ROKU) Stock Analysis

Roku’s principal competitive advantage is its control of the TV operating system (OS) and home screen interface in the U.S. streaming market. As of year-end 2024, Roku devices powered 90 million streaming households, more than any other TV OS in the U.S., Canada, or Mexico. Over half of U.S. broadband households use a Roku device, giving the company unmatched reach and engagement. The Roku home screen is the default entry point for 125 million viewers, allowing Roku to influence content discovery and advertising in a way that rivals such as Amazon (Fire TV), Google (Android TV), and Samsung (Tizen) cannot fully replicate.

Roku’s OS is purpose-built for television, offering a simple, user-friendly interface and broad device compatibility at low price points. This focus has enabled Roku to outpace competitors in both device sales and user engagement. For example, engagement on the Roku Channel grew 82% year-over-year, and Roku’s platform accounted for 5.4% of all U.S. TV streaming time as of June 2025.

Roku’s scale attracts content partners and advertisers, reinforcing its platform’s value. However, the company faces threats from vertically integrated rivals with greater resources (e.g., Amazon, Google, Apple), and from TV manufacturers investing in proprietary OS solutions. While Roku’s brand and user experience are strong, its continued advantage depends on maintaining platform neutrality, content breadth, and superior user engagement.