
Picture, if you will, the year 2017: a dashing young Roku, hardware revenue accounting for a robust 54% of its coffers. Fast forward to today, and this figure has dwindled to a mere 12%, like a gentleman reluctantly surrendering his last shilling to a more beguiling cause. The culprit? A dashingly clever platform segment, now hogging the limelight with advertising and subscription deals. One might liken it to a theatrical troupe where the supporting actor (hardware) gradually cedes the stage to the leading man (platform). True, the hardware – media sticks, televisions, and whatnot – remains the velvet carpet ushering punters into the theater. But the real coin, dear reader, lies in the popcorn sales. Gross margins of 51% for the platform versus hardware’s money-losing performances? A tale of two cities indeed. Five years hence, one suspects hardware’s role will be as subtle as a butler’s cough – ever-present, yet politely ignored.