Originally Posted by Andysol
What's the angle?
There was an article suggesting Roku may be planning to go public:
"Roku has raised a total of $127 million in funding from investors."
"Netflix planned to release its own box until CEO Reed Hastings decided to stay out of the hardware business. Wood created a separate company (Roku) that Netflix backed with $6 million.
In May 2013, Roku received $60 million in new funding from Hearst Corp. and an unidentified institutional investor. They joined Menlo Ventures, News Corp., British Sky Broadcasting Group Plc (BSY) and others backers who previously financed the company.
Wood said in an interview at the time that the company had sufficient cash and that going public was “not a priority for us right now.”"
The fact they need funding from investors suggests they can't grow the business on their own as they aren't profitable enough. If they were planning to take the company public, they'd probably try to justify to potential investors how valuable an investment the company would be relative to the biggest competitors. Suggesting that the Apple TV isn't worth their biggest competitor even selling is one way to do that.
Looking at Roku and the Apple TV as competitors doesn't tell the whole story either. The chips Apple uses in the Apple TV are designed by Apple and the costs for those are supported by their iPhone and iPad business. They are dual-core parts with one core disabled. Roku instead buys media processors from Broadcom, the latest chip being the Broadcom BCM11130. Roku has no other part of their business to share costs with.
If investors are throwing money in to keep Roku afloat and there's no return, they'll eventually stop doing that. Apple can keep the Apple TV alive for as long as they want.