Roku (NASDAQ:ROKU) has solidified its spot as the number one streaming-TV operating system in Mexico, the company announced on Tuesday morning. Roku's first-place position in the market shows how it is taking its winning formula for taking market share to international territory, building on its position as the number one platform in the U.S. and Canada.
Roku's success in Mexico is good news for investors. Not only does it show how the company is winning in Mexico, but it demonstrates how Roku's international strategy possesses promise.
Roku in Mexico
Based on hours streamed, Hypothesis Group says Roku is now the leading smart TV platform in Mexico. This comes as the company has lined up 8 TV partners in the market and is now launching its 4K streaming stick there.
Hypothesis' conclusion about Roku's market position in Mexico is based on a survey of 2,534 respondents in the market. Not only did Hypothesis conclude that more hours are streamed on Roku than any other platform, but the research firm said survey respondents indicated that consumers see Roku as "the best streaming platform for free TV shows and movies."
More international success to come?
One of the key catalysts often cited by Roku bulls is the company's international opportunity. As of today, the vast majority of its active account base is in the U.S. Yet management confirmed in the company's most recent earnings call that international is growing faster than the U.S., speaking to Roku's opportunity beyond its borders.
Some of the newer markets that Roku has expanded to include Germany and Brazil. The company plans to expand its Latin America penetration this year, bringing Roku TV models to Chile and Peru this year.
Roku founder and CEO Anthony Wood has been very bullish on the international opportunity for some time, noting that he believes there's no reason that it can't replicate the same successful market-share gaining formula it has used in the U.S. in other countries. But investors likely want more proof before they begin betting this can happen successfully. This is why Roku's news about its success in Mexico is important. Its success in the country offers a recent example of how Roku can win internationally.
Further, Hypothesis Group's finding that Roku is favored as a platform for discovering free TV shows and movies is particularly promising for the company's international prospects. In emerging markets, more consumers will likely want ad-funded, free content than U.S. consumers. If Roku can shine in free TV, it positions the company well to attract more price-sensitive international consumers and ultimately help carve out meaningful market share outside of the U.S.