Netflix Player by Roku Has Potential to Really Impact the Market

In an article I wrote for GigaOm.com Tuesday entitled "Content Offerings Only Reach a Few Million TVs", I broke down of the number of non-PC related products like the XBOX 360, Roku, PS3, TiVo Series 3 and VUDU devices that are really capable of getting movies and other online video content. For my sales estimate of the Netflix player by Roku, (NFLX) I estimated that to date, Roku had sold 10,000 units.

Since publication of the article, I've now learned that the accurate number of units sold is closer to 100,000. While it surprised me the number was that high, it does seem possible, as that would equal about 1% of Netflix's 8.2 million customers. Considering the price point ($99) and the fact that the product's marketing is very focused to a targeted audience, Roku's penetration rate would be higher than the average product that has only been on the market for eight weeks. Plus, once you have the Roku box, the content is free.

At this rate, it will not take too long for the Roku box to outsell Apple (AAPL) TV. Apple TV has been on sale for 20 months now and based on published reports, has sold a bit less than 400,000 units. Roku has sold nearly a quarter of that in only 2 months time. And with the promise of the Roku player being capable of getting more than just Netflix content down the road, this little device has some real potential to make a real impact in the market.

Disclosure: None

Comments

[svosavvy]

Yeah especially when msft buys them to take on aapl in the tv arena

[svosavvy]

them being nflx

[rogermh]

I may be mistaken, but I don't believe Netflix or Roku have provided any sales numbers for the Roku box. 100,000 units in less than 2 months seems pretty high. Where did you get that number?

[Dan Rayburn]

If I could have said who told me the number, then I would have put it in the post. I would not have published it if it did not come from someone who would know.