Roku · Strategy · Senior · 45 to 60 minutes

How should Roku respond to smart TVs?

Roku makes software and devices that let people stream internet video on their TVs. Answer this product management case and get it graded line by line against a weighted rubric.

strategy
platform_economics
stakeholder_management
prioritization
go_to_market

The situation

It is the moment when internet connected TVs are starting to enter the market, and Roku leadership wants a company level recommendation. Roku has proven that consumers will buy a simple streaming box and use it to access services like Netflix and other channels, but the current model is hard to scale. Roku must persuade people they need a separate device, win against other boxes at retail, and then earn usage after the device is plugged in. At the same time, TV manufacturers are beginning to ship their own connected software experiences, which could make Roku less necessary over time. Anthony Wood and the leadership team ask you, a senior PM on the platform side, for a strategy memo. Should Roku stay focused on selling branded players and sticks, try to get its software embedded directly in TVs, or pursue a different mix? The decision is urgent because it affects distribution, partner relationships, product roadmap, and the long term economics of the business. The hard part is that hardware economics are weak, TV makers operate on thin margins, and Roku needs to stay attractive to many streaming services rather than looking like it favors any one of them.

What to produce

Write a 2 page strategy memo for Roku leadership.

Your answer must

State the core strategic question and the 1 to 3 assumptions that matter most.
Evaluate at least 3 options, including standalone devices only, TV operating system licensing, and a hybrid path.
Explain the value proposition and likely objections for each major stakeholder, consumers, TV manufacturers, retailers, and streaming services.
Make a clear recommendation with a 12 to 24 month sequence of product, partnership, and go to market moves.
Define success metrics and leading indicators that show whether the strategy is working, plus the top risks and mitigations.

Constraints

Roku cannot rely on healthy device margins to fund growth.
Roku must remain broadly credible as an independent platform for multiple streaming services.
TV manufacturers are cost sensitive and operate on very thin margins.
Retail distribution matters because shelf space and pricing strongly influence TV and device sales.

Format

Use sections for problem, options, recommendation, stakeholder economics, execution plan, and risks.

How Roku actually played it

Describes how Roku moved from a Netflix player to the platform for streaming, using hardware as a Trojan horse and the platform play.

Hardware can be a distribution wedge
Defaults are powerful
Think in layers of the stack

Built from How Roku Grows: The Platform For Streaming Platforms by Jaryd Hermann (How They Grow).