Wholesale transfer price fixed!
"NBC content will be added to the free, ad-supported Roku Channel. NBCU is providing some kind of value to Roku: The platform company said it has a deal for “a meaningful partnership around advertising.” variety.com/2020/digital/n…
"Inventory Split model: the channel sets up its own ad server and must send 30% of inventory to Roku. Roku retains 100% of revenue from this inventory (but is under no obligation to fill it). The publisher fully controls the remaining 70%" developer.roku.com/docs/features/…
"Roku Sales Representation Program: Channels participating in this program route 100% of their inventory to Roku to be managed and sold, shifting the financial and managerial cost of building advertising demand and delivering content to Roku." developer.roku.com/docs/features/…
Zhou Enlai famously said: "Too early to say about the Roku valuation without more information about the other unit economics variables. Like that youngster Charlie Munger, I put Roku in the too hard pile. I like the Roku model but is it undervalued so there's a margin of safety?"
Deng Xiaoping famously said "It doesn't matter whether a cat is black or white, as long as it catches mice." He was referring to a "SaaS plus a box" business model where the atoms are used to get distribution for bits. The lower hardware gross margins translate into lower CAC.
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