Roku may position itself as a pure-play company selling an Internet TV device, in contrast to Apple Inc., which sells the Apple TV box and other electronics products, one person said. Roku also competes with game consoles and some TV makers providing Web access on sets. All are vying for the growing audience for online services such as Netflix Inc., including people who don’t want traditional pay TV.

The Roku player takes Internet videos, such as from Netflix and Amazon.com Inc., and streams them to TV sets. Researcher Parks Associates said last year that 37 percent of households with a streaming media system use Roku as their primary device, compared with 24 percent for Apple TV. Roku also licenses its technology to television manufacturers.

From the article, "Roku Said to Be Weighing Initial Public Offering in 2014" by Jon Erlichman and Leslie Picker.

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