Has Roku Reached the End of Its Business Life Cycle?
The 5 Stages of a Business Life Cycle
Every new business that lasts eventually will reach all 5 different stages of its Business Life Cycle. We see this repeated over and over with new startups and old established companies that have been around forever.
A business can last for many years like the cable TV industry, or they can crash and burn rather quickly like the CNN News streaming app that barely made it a month before they pulled the plug.
Launch Stage - This is when a new business is launched. During this time, marketing is busy extolling all the virtues of a new product and is an excting time for the business, and new potential customers who discover the business for the first time.
Growth Stage - During this time if the product is successful, the business will experience healthy growth.
Shakeout Stage - At this point, the business has become established, with healthy sales. Now along come competitors trying to cash in. Sales may start to decline as more competitors fight for a limited number of customers.
Maturity Stage - This can also be called the resting on your laurels stage. Many successful companies that will enter this stage have seen tremendous growth. Often resting on their past successes, this stage could last for many years before eventually, a business reaches the last and final stage.
Decline - This is the last stage of a business that will eventually see a large segment of its customers go elsewhere. During this time businesses are ripe for being sold off, or closing their doors completely. This is brought on by changes in policy, lack of innovation, or the business owners just giving up. Often choosing to chase a new startup, rather than doubling down and continuing to innovate and fix their lackluster growth.
Where is Roku In its Business Life Cycle?
Roku quickly rose and became very popular when it launched its media streamers. Since they relied on others to provide the content on their platform. Initially, there were not many apps. At the time, Netflix was the primary channel that drew many new users to Roku and streaming television for the first time.
But Roku also offered something then no other media streamer did. The ability to sideload Private channels which the Adult Industry embraced in mass. For $50 you could buy a media streamer and easily watch full adult movies on your television instead of a tiny phone or tablet.
Private channels also came with a dark side as some shady developers built private subscriptions and free channels that contained pirated content. This became such a cat and mouse game that at the beginning of this year, Roku finally removed private channels from its platform. This was a loss for Roku owners who enjoyed watching these channels.
As a business, Roku has reached the Maturity Stage. They have grown their user base through a combination of great innovation and ever-expanding content through the years. But some competitors like Apple and Nvidia now build better, faster, and less restricted media streamers.
At the present time, Roku continues to hold onto a sizeable base of loyal customers who still love its products and may continue to do so for many years.
They also built their own free ad-supported content library and deliver it through their own streaming channel The Roku Channel. This helped them gain profits through advertisements and other content deals which they otherwise would have missed out on.
Mergers and Aquisistions
The stock market has taken a big hit lately, and it has not been kind to Roku's Stock either. This could make Roku's business ripe for a merger or buyout from a larger competitor. While rumors have circulated for years of other companies like Amazon, Apple, or Comcast would buy Roku, eventually, this could happen it has not happened yet.
If Roku should ever be sold, it could help Roku expand its market share even further, or its business could be neglected, languish indefinitely, and enter its Final Business stage which is Decline and obscurity.
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Use of third-party trademarks on this site is not intended to imply endorsement nor affiliation with respective trademark owners.
We are Not Affiliated with or Endorsed by Roku®, Apple, Google or Other Companies we may write about.
