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I had no idea Roku was born from Netflix, they did a good job at distancing themselves. I think this origin story also speaks to Reid fully understanding what h

by adim86 7y ago

I had no idea Roku was born from Netflix, they did a good job at distancing themselves. I think this origin story also speaks to Reid fully understanding what he set out to do with Netflix, which is to stream entertainment over the internet. From the name to this move it seems very clear that's has taken that mission VERY seriously. It is really hard to invest in something so much and when you realize it is wrong viciously distance yourself from it. very few companies rarely pivot from their original mission. The only thing I would have done differently would be to open-source the hardware and Software of the Roku, basically creating a ton of competitors but at the same time pushing the mission of streaming movies further and getting Netflix to more screens. It still worked out regardless

karatestomp 7y ago
No-one could have competed on hardware price without placement and ad deals anyway. Those are why the hardware can be so cheap.
- andrewla 7y ago
  The hardware initially was cheap, and had no placement ad deals. Possibly they were selling at a loss, who knows?, but for sure at one point their business model was to sell a hardware device that was good at streaming.
  - karatestomp 7y ago
    Did the early models not bundle apps for any services? From what I’ve seen in the space, consumers want to spend $30-50, retailers want a giant percentage to put you on their shelves, and that doesn’t leave much for hardware assuming you want any profit. Then there’s support, design & R&D... A few ad deals or some sponsorship for placement/bundling and suddenly hitting an acceptable price seems almost feasible. [edit] and of course price expectations are so low because the competition’s selling at-cost and making money on the side deals. You’re on the shelf next to something with ads but that doesn’t go on the price sticker.
  - 01100011 7y ago
    I'm pretty sure they were getting paid for Netflix signups from the beginning.

by adim86 7y ago

karatestomp 7y ago

No-one could have competed on hardware price without placement and ad deals anyway. Those are why the hardware can be so cheap.

andrewla 7y ago
The hardware initially was cheap, and had no placement ad deals. Possibly they were selling at a loss, who knows?, but for sure at one point their business model was to sell a hardware device that was good at streaming.
- karatestomp 7y ago
  Did the early models not bundle apps for any services? From what I’ve seen in the space, consumers want to spend $30-50, retailers want a giant percentage to put you on their shelves, and that doesn’t leave much for hardware assuming you want any profit. Then there’s support, design & R&D... A few ad deals or some sponsorship for placement/bundling and suddenly hitting an acceptable price seems almost feasible. [edit] and of course price expectations are so low because the competition’s selling at-cost and making money on the side deals. You’re on the shelf next to something with ads but that doesn’t go on the price sticker.
- 01100011 7y ago
  I'm pretty sure they were getting paid for Netflix signups from the beginning.