More viewers cut the cord last year, and the number of pay-TV households in the United States dropped by 7.5%, according to eMarketer. That trend has translated into big success for companies like Netflix (NASDAQ: NFLX) and Roku (NASDAQ: ROKU), and it's made many shareholders rich in the process.
Going forward, both companies should continue to benefit as streaming content replaces linear TV. But which stock stands to benefit more?
Roku's platform has become increasingly valuable as the number of streaming services has multiplied. By aggregating content from multiple services, Roku simplifies life for consumers, allowing them to access and manage all their streaming services from one location -- that includes both ad-supported products like Walt Disney-controlled Hulu and subscription products like Netflix. This allows Roku to earn revenue in a few different ways.
Source Fool.com