Ava AbbottRoku is an American company that offers streaming devices and services. The company operates a streaming platform and offers wireless-enabled players and televisions. It is headquartered in San Jose, California, and was founded in 2002 by Anthony Wood.
Roku’s platform connects users to movies, TV episodes, live sports, music, and news, which they can stream from their Roku devices. The company has 51.2 million active accounts and around 1925 employees. In 2020, Roku’s net revenues increased by 58% to $1.778 billion. Its profit surged 63% to $808 million. [1]
Roku was the No. 1 smart TV operating system in the United States in 2020. It provides its products and services through its website, retailers, and distributors in the U.S., Canada, the UK, France, Ireland, Mexico, and Latin America.
In 2020, the company launched its Roku Channel in the UK and expanded into Ireland after partnering with RTE. Now, the Roku Channel reaches 63 million viewers across the U.S., Canada, and the UK.
Ad sales on the fast-expanding Roku Channel grew by 71% in 2020 to $1.268 billion. As America’s largest pay-TV operator, Roku has to fend off top competitors and alternatives to retain its leadership position. [2]
Here is an in-depth analysis of top Roku’s competitors and alternatives:
1. Amazon Fire TV
Year founded: 2014
Headquarter: Seattle, Washington
Amazon Fire TV offers streaming media players, including Fire TV Cube, Fire TV Stick, and Fire TV Stick with 4K. These devices allow users to access streaming services like Netflix, Hulu, HBO, Showtime, Spotify, and more. They come with controllers, allowing users to play video games. As a subsidiary of the iconic Amazon, Fire TV has vast financial resources to compete against Roku. Amazon has over 840,000 employees versus 1925 employees for Roku.
In 2020, Amazon made $280.52 billion in revenues versus $1.7 billion for Roku.
Roku is attracting new users faster than Fire TV. At the start of 2020, Amazon Fire TV had 40 million active accounts versus Roku’s 43 million. Roku has opened up the gap in the past few months and now stands at around 60 million users.
In late 2020, Roku partnered with Amazon to offer the Roku Channel via Fire TV devices. Consumers can buy Fire TV devices to access Roku and Fire TV. This partnership increases Roku Channel’s advantage and gives Amazon an edge in hardware sales. Amazon is Roku’s top competitor and alternative for many reasons. [3]
2. Google Chromecast
Year founded: 2013
Headquarter: Mountain View, California
Chromecast is a digital media player developed by Google. It is a line of Internet-enabled devices that allow users to stream audio and video content on their HD televisions. Since 2013, Google has sold over 30 million Chromecast apps globally, including Chromecast Audio, Chromecast Ultra, and HD video Chromecast. It has handled more than 1.5 billion stream requests since 2015.
In 2020, Google launched Chromecast with Google TV. This latest model competes with six Roku devices, including Roku Express, Roku Premiere, and Roku Streaming Stick. It contributed to Google’s 2020 revenue of $181.69 billion.
Chromecast dongles fall under Google’s hardware business, which rakes in over $2 billion annually. Though Chromecast is robust, Roku is cheaper. The latest Chromecast with Google TV can give Roku a run for its money across the board. [4]
3. Comcast
Year founded: 1963
Headquarter: Philadelphia, Pennsylvania
For over 50 years, Comcast has expanded its operations from telecommunication to entertainment. This media and tech business makes money through NBC Universal, Comcast Cable, and Sky. It is the largest cable and broadband company in the US, with over 190,000 employees.
For fiscal 2020, the company’s annual revenue was $103.56 billion, more than 50 times Roku’s $1.7 billion.
In late 2019, Comcast offered free streaming boxes to all its broadband customers. Its Xfinity Internet subscribers can access Netflix, Amazon Prime Video, Showtime, HBO, and over 10,000 movies and TV shows.
Comcast also recently launched its Peacock streaming service, which has already amassed over 30 million subscribers. In the UK, Comcast’s Sky division has more than 20 million subscribers. Comcast is the most experienced Roku competitor. [5]
4. Apple TV
Year founded: 2007
Headquarter: Cupertino, California
Apple TV is a digital media player and micro console for Apple Inc. It offers audio and video streaming on TV via supported devices. Apple has 137,000 employees and made $260.17 billion in revenue for fiscal 2020. The company’s financial capabilities give Apple TV a significant advantage over Roku.
Since September 2019, anyone who bought an Apple product got one year of Apple TV+ for free. The company has sold hundreds of millions of iPhones with Apple TV since late 2019. However, about 62% of Apple TV subscribers are still on the promotional offer.
Apple TV+ has around 87 original TV shows, movies, and documentaries versus more than 1000 shows on Roku. So, viewers get more value by subscribing to Roku over Apple TV. But millions of consumers globally rely on iPad, iPhone, Mac, and Apple Watch. These devices make Apple TV one of the top competitors for Roku. [6]
5. NVidia Shield TV
Year founded: 2015
Headquarter: Santa Clara, California
NVidia Shield TV is a digital media player that allows users to stream content and play video games from compatible PCs. It is an Android TV-based media streamer offered by NVidia, a tech guru with over 13,000 employees. In 2020, NVidia’s revenue was $10.918 billion, a 6.81% decline from 2019.
NVidia Shield TV comes with in-built Google Assistant and Chromecast and stands out as the only streaming player that casts Disney+ content. The latest NVidia Shield TV Pro features 4K resolution and HDR streaming capabilities, making it ideal for gamers.
Gamers can stream and play more than 200 exclusive PC games via Android TV. This offering makes NVidia Shield TV the best Roku alternative for gamers. But NVidia Shield TV costs around $150, which can push some customers to Roku. [7]
6. Hulu
Year founded: 2007
Headquarter: Santa Monica, California
Hulu is a premium streaming service that offers live and on-demand TV and movies. It was owned by Comcast’s NBC Universal until its acquisition by Walt Disney for $15.8 billion in 2019. Hulu generated around $4.4 billion in revenue in 2020, with $2.9 billion from subscriptions. It has 2,900 employees and more than 39 million paying subscribers, about 12 million less than Roku.
Hulu competes directly with the Roku Channel. The main advantage for Hulu is Walt Disney’s unbeatable offerings. Walt Disney bundles Hulu, Disney+, and ESPN+ for $12.99.
This bundled plan offers something for the entire family, which can poach some subscribers from Roku. Disney+ has around 100 million subscribers globally, and 10 million subscribe to ESPN+. Disney and ESPN subscribers can cross over to Hulu. Hulu is a worthy competitor for the Roku Channel. [8]
7. AT&T TV
Year founded: 2016
Headquarter: Dallas, Texas
AT&T TV started life as DirecTV Now and has seen a tumultuous five years. It has changed its name twice and hiked prices several times. The platform is similar to Hulu+ Live TV and costs $70. Users can access regional sports networks by paying the $85 package. AT&T TV has 656,000 subscribers and is shut down to new customers.
The main drawback of using AT&T TV is the high price. However, it has more season games of NBA basketball and MLB baseball teams than any other competitor.
AT&T TV app is designed with a unique swiping channel-change mechanic to allow viewers to switch between games more easily. Unlike Roku, AT&T TV has the pause live TV functionality, ideal for watching sports. AT&T TV is the best Roku alternative for sports fans. [9]
8. Sling TV
Year founded: 2015
Headquarter: Englewood, Colorado
Sling TV is a streaming platform that offers live content and video-on-demand options. Users can pay $35 per month to access Sling Blue or Sling Orange, or pay $50 per month for both. It also allows users to customize their base packages with topical add-ons.
Sling TV is a subsidiary of Dish Network. In 2020, Dish Network reported annual revenue of $15.49 billion, compared to $12.81 billion in 2019. [10]
Sling TV has 2.474 million subscribers. It has seen a steady decline in subscribers in the past 18 months. The company had 2.592 million in 2019 but lost 118,000 subscribers in 2020.
In Sept 2020, Sling TV added NFL Network and NFL RedZone to its channel line-up to entice subscribers. But later increased the price of Sling Orange and Sling Blue by $5 to $35 per month. The price hike shifts the advantage to cheaper alternatives like Roku. Sling TV’s flexible packages and sports offering makes it a worthy competitor for Roku. [11]
9. RealNetworks
Year founded: 1994
Headquarter: Seattle, Washington
RealNetworks is a trailblazer in the internet streaming media market. Its SAFR was the world’s first computer vision platform for live video. Users can rely on its KONTXT, an industry-leading text and multi-media analysis platform powered by NLP. RealNetworks also offers free-to-play mobile games and leverages AI to enhance users’ gaming and streaming experience.
RealNetworks’ revenue for 2020 was $68.1 million, up 3% from $65.8 million in 2019. It has 441 employees and 14 offices globally. The company’s RealPlayer Cloud allows users to move, watch, and share their videos.
They can also cast videos on their smartphones and view them on television. This player competes with Roku’s offerings. Users can also access and use RealPlayer on Roku’s platform, which shifts the advantage to Roku. [12]
10. Netflix
Year founded: 1997
Headquarter: Los Gatos, California
Netflix is the most popular subscription-video on demand (SVOD) service. And Roku is the leader in the ad-based video-on-demand (AVOD) market. With 200 million subscribers, Netflix has about four times Roku’s 50 million users. Roku lags behind because the AVOD market is newer than Netflix’s SVOD market. [12]
In January 2021, Roku bought a streaming platform called Quibi and rebranded its 75 shows as “Roku Originals” in April. In May, the company started streaming these shows via Roku Channel and recorded a surge of new subscribers.
With this expansion, Roku now competes with Netflix for customers. It can poach some viewers from Netflix. But Netflix won’t give up its $25 billion annual revenues and market share without a fight. [13]
11. FuboTV
Year founded: 2015
Headquarter: New York, N.Y.
FuboTV is a live TV streaming platform with over 100 news, entertainment, and sports channels. Its Basic plan costs $65 per month, but avid sports fans can customize their packages with add-on content for an additional monthly fee. FuboTV’s subscribers surged 72% to 545,000 in 2020.
The main advantage of FuboTV is its diversified portfolio. It recently acquired Balto Sports and Vigtory to expand its free-to-play gaming app and launched sportsbook, its gambling platform.
In 2020, FuboTV generated $217 million in revenue and saw a 98% increase in Q4 revenues to reach $105 million. FuboTV is one of Roku’s top competitors, thanks to its fast-growing revenues and subscribers. [14]
12. HUMAX
Year founded: 1989
Headquarter: Seongnam, South Korea
HUMAX manufactures and markets digital set-top boxes used as broadcasting receivers. These boxes allow users to stream HD videos via satellite. The company also provides cable and satellite HD personal video recorder STBs for recording live TV to watch later.
But HUMAX’s revenues have been declining, from $1.4 billion in 2017 to $1.2 billion in 2018, $927 million in 2019, and $783 million in 2020.
According to Tech Radar’s Top 10 PVRs for 2020, HUMAX FVP-5000T was number one, and HUMAX HDR-1100S was fifth. With HUMAX FVP-5000T, users can access Netflix, YouTube, and most catch-up services. HUMAX offers the best alternatives to Roku’s PVRs. [15]
13. Skyworth
Year founded: 1988
Headquarter: Shenzhen, China
Skyworth is a Chinese consumer electronics company that manufactures and sells digital set-top boxes, televisions, display and communication devices, and more. In 2020, the company had over 35,000 employees and generated $5.8 billion in revenues, about 4 times Roku’s $1.7 billion.
Skyworth’s set-top boxes compete against Roku’s offerings. However, the company is facing backlash after the revelation that its television sets were collecting viewers’ private data and sending it to Beijing-based analytics firm Gozen Data. In China, Skyworth is one of the top competitors for Roku. [16]
14. CommScope
Year founded: 1976
Headquarter: Hickory, North Carolina
CommScope is one of the world’s largest set-top box manufacturers. It formalized a $7.4 billion merger with Arris International in 2019, increasing its network infrastructure for cable, PON, and wireless.
The company’s Home Networks unit makes pay-TV set-top boxes and generates $1.2 billion in revenues annually. It sells four times more hardware than Roku.
CommScope is overwhelmed by customers’ orders due to global chip shortages and ended the first half of 2021 with more than $1 billion in backlog orders. But Roku is also facing the same challenges. It projected lower revenues for 2021 due to microchip shortages.
According to insiders, CommScope is looking to sell or spun out its Home Networks unit by 2022. These uncertainties give Roku an advantage. [17]
15. Manhattan TV
Year founded: 2010
Headquarter: London, UK
Manhattan TV is the largest UK-owned manufacturer of set-top boxes. With 58 employees and $11 million annual turnovers, Manhattan still has a long way to catch up to Roku. However, the company’s innovative set-top box is giving Roku a hard time in the UK market.
The company’s Manhattan T3-R offers access to BBC, ITV, All4, UKTV Play, BritBox, YouTube, CBS Catch-up, Horror Bites, STV, and more. Users can record, pause live TV, and stream catch-up TV. The Manhattan T3-R is more popular than Roku’s alternative in the UK. [18]
References & more information
- Clover, J. (2021, Feb 19). Record revenue for Roku in 2020. Broadband TV News
- Frankel, D. (2021, Feb 19). Roku Reaps Record $650 Million in Q4 Revenue as Advertising Sales Spike 81%. Next TV
- Levy, A. (2020, Oct 11). Roku Just Partnered With Its Biggest Competitor. The Motley Fool
- Price, D. (2021, Feb 15). Chromecast vs. Roku: Which One Is Best for You? MUO
- Ryan, P. (2021, Jan 8). Roku vs. Comcast: Which Stock is a Better Buy? Stock News
- Leswing, K. (2021, Jun 26). Apple’s TV service faces its biggest test yet as free trials run out. CNBC
- Cohen, S. (2021, Jun 18). The best streaming devices for 2021. Digital Trends
- Curry, D. (2021, Mar 29). Hulu Revenue and Usage Statistics. Business of Apps
- Pendlebury, T. (2021, Apr 1). AT&T TV review: Great for sports fans and channel flippers, but expensive. CNET
- Watson, Z. (2021, Jun 17). Sling TV Review and Prices. US News
- Milliner, J. (2021, Feb 22). Sling TV Adds 16K Subscribers in Q4 2020 But Lost 118K in 2020. The Streamable
- PR News (2021, May 12). RealNetworks Announces First Quarter 2021 Financial Results. PR Newswire
- Kindig, B. (2021, Jan 21). Netflix and Roku Stock: The Crucial Difference. Forbes
- Sun, L. (2021, Jun 24). Is Roku Getting Ready to Challenge Netflix? The Motley Fool
- Jennewine, T. (2021, Mar 24). Better Buy: fuboTV vs. Roku. The Motley Fool
- Williams, A. (2020, Jun 03). The best set-top box 2021: the top PVRs to enhance your TV. Tech Radar
- Shen, X. (2021, May 3). Chinese TV maker Skyworth is under fire for excessive data collection that users call spying. SCMP
- Frankel, D. (2021, May 11). From Roku to CommScope, Global Chip Shortage Roils Tech, and Telecom Earnings. Next TV
- Carter, J. (2021, May). Manhattan T3-R review. Tech Radar
- Featured Image by Glenn Carstens-Peters
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Kevin Johnson
Brianna Parker
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