Thursday, April 5, 2012

How more competition can increase sales

Interesting comments here on Fast Company from Roku CEO about competing Apple TV. Roku makes the Roku Box, a piece of Internet-connected hardware that will turn your TV into a Smart TV so that you can stream web content and run apps.

Roku outsells Apple TV right now in the USA but understandably, everyone is waiting for Apple to jump into Smart TV in a big way soon with the release of a Apple-branded TV set, most likely in the form of an Apple HDTV that runs iOS.  It will probably be expensive but it also has the potential to set the Smart TV market on fire.

You'd think Roku was scared but they aren't and here's why: Smart TVs or Internet-connected TVs are still a relatively new product category.  When you are competing in a relatively new product category, competition (especially from big brands with lots of recognition) helps raise category awareness - big time.

As the Roku CEO says, "sales doubled with Apple released the Apple TV". 

Next time you're scared by the entrance of a major brand in your category, think of it as a opportunity and not a threat.  

Image credit: robertnelson