In the broader streaming video market, Amazon is emerging as the chief rival to Roku.
The two companies have emerged as the leading makers of digital video players, and the leading third-party providers of smart TV software platforms.
Advertising has emerged as an important business for both companies, and Amazon is reportedly developing its own ad-supported video service that could rival the Roku Channel.
The threat from Amazon could crimp Roku’s growth prospects, Morgan Stanley said in a new report.
You can add another company to the list of those whose business is threatened by Amazon: Roku.
Those two companies are now the two leading players in the broadly-defined streaming television market, Morgan Stanley research analysts Benjamin Swinburne and Brian Nowak said in a report released Monday. Amazon is gaining steam in the industry, and its growth threatens to crimp Roku’s own, they said.
“Amazon is directly in competition with Roku,” Swinburne and Nowak said in the report. They continued: “Amazon has seen meaningful share gains … and is likely catching up to Roku.”
That’s likely to strike some fear into the hearts of investors and possibly Roku’s management. Amazon, after all, is a notoriously cutthroat competitor, especially in its core retail business, where it’s already helped …read more
Source:: Businessinsider – Technology