What’s new, Roku?
If Roku (ROKU) TVs sound familiar, it’s because the company has released co-branded TVs for years. However, previously, it partnered with third-party manufacturers like Walmart (WMT) to produce them. In other words, the TVs used Roku’s software as a selling point, but the hardware was built and owned by other companies.
Now, the streaming box maker has released its own TVs, this time with a different kind of partner: an exclusive distributor. The new Roku TV features Roku’s voice remote, Bluetooth private listening, automatic brightness, and local dimming — plus, a big blue “Only at Best Buy” (BBY) sticker.
Historically, Roku has actually lost money on its hardware products, like its streaming dongles and TVs, which likely explains the pivot away from third-party manufacturers.
Also, exclusive distribution deals, like Roku’s newfound partnership with Best Buy, tend to ensure more favorable profit margins for both parties. So, Roku will almost certainly earn more per unit sold moving forward.
Additionally, owning the TVs will help Roku establish direct contact with its customers. This will allow the company to offer a higher quality of service, test new products with faster results, and upgrade its platform more efficiently. And, with 70 million active accounts in the US, the company has plenty of customers to contact.
One of the biggest features to the new Roku TV is the planned launch of Local News. This news service will personalize news channels by location and allow users to stream channels from major metros. Roku has also announced a slew of updates to its mobile app and operating system.
If you’re in the market to upgrade your screen, the Roku TV will soon be hitting Best Buy shelves near you. But, if you’re not sold on it just yet, keep an eye out for more news. With the rollout of new products and features, Roku’s updates likely won’t stop anytime soon.
Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.