@couch_investor gave a great pitch on Roku which you can watch HERE

Or read the pitch below ⤵

$ROKU is the gatekeeper to the streaming world and is also a play in the ad revolution and not just the streaming wars.

So how does it make money?

There is platform revenue and play revenue.

Platform revenue is everything on the Roku operating system. Whether it's advertisements, content, distribution, every placement of the streaming giants costs money. Netflix is the first thing you see there. They paid for that. Or the advertising— if there is some new movies and that's on the front page, whether it's for Disney for Netflix, doesn't matter. That's how Roku makes money.

Play revenue: why is it down 19%?

Well supply chain issues, not a lot of people want to buy new TVs, new sticks, new remotes, etc. And they're also taking a hit themselves rather than making it more expensive for their customers, people might actually buy it instead of more expensive ones, which also one of the ways that they're gaining market share.

Now the platform revenue, that's actually up 39% year over year. So that's quite nice. And then the Roku flywheel: Roku channel is free to view, but it's an ad supported channel. So how does it work? There's content on there, lots of engagement, more audience, which would bring more advertisers, more money to create more content.

And the flywheel goes round and round.

Now, like I said, there is an advertising play here as well. Basically, you're watching a football game on cable. You don't see an ad there, but then you go and stream a movie on the Roku channel. Suddenly you see an ad there.

It also works across device where you can see something on mobile, then go on your laptop. Then you actually make your purchase on that laptop as well. And then the last step: something that will be repeated by advertisers is optimizing the campaign so that you spend the same amount of money, but have a better results.

Nice for the market-share the share of big screen. As you can see here, I know we've heard for the last couple of months, years, or something that Roku might be losing market share, but actually not that much, to be honest.

The reach for TV streaming surpassed legacy TV and paid TV in the United States for the first time. Expect this to rise in the future as well.

Then a couple of bearish points:

1) Can Roku replicate its US success worldwide?

2) The competition, and then

3) Supply chain issues.