Roku partnered with TCL two years ago for an earlier generation of high-definition smart TVs. The companies announced at the Consumer Electronics Show in January that they've sold more than 1 million units.
It's a new business model for Roku, which is accustomed to making money from hardware. Now, TCL is selling the devices and Roku is left to generate revenue from the platform. That can happen by selling services and channels, similar to how consumers buy mobile apps, and through advertising as more content becomes streamed.
"The more engagement we can get with consumers, the more opportunities there are to monetize that experience," Smith said. "Once all TV is streamed, all advertising is streamed. If we're at the center of it, that's a great place to be."
Correction -- The story now accurately says that 4K refers to TVs with 4,000 horizontal pixels. Total pixels are around 8 million, multiplying horizontal pixels by vertical.