Roku Strengthens Streaming Dominance as Vizio Acquisition Frees Up $500M in Ad Revenue
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Vizio being acquired by Walmart is positive for Roku as it leaves Roku as the monopolist for advertising in the streaming space.
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With Vizio focused on different goals under Walmart, it frees up $500 million of ad revenue that Roku can gain. This would be a 30% boost to Roku's ad business.
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Roku benefits from being a founder-led business focused solely on streaming. This allows them to pivot and upgrade products faster than competitors owned by large conglomerates.
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As competitors consolidate through mergers and acquisitions, Roku retains its pure-play streaming focus. This focus makes them nimble.
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As an arms dealer taking 20% revenue share from all streaming services on its platform, Roku wins regardless of which service comes out on top.