Roku (ROKU) is a major player in the streaming industry, producing digital media players through which users can access major streaming platforms like Disney+ (DIS) and Netflix (NFLX). However, unlike competitors such as Amazon (AMZN) and Comcast (CMCSA), Roku has yet to release its own smart TVs.
Producing branded TVs is a major advantage for streaming companies. It allows them to choose which services are promoted over others. For example, on a Fire TV, Amazon can promote Prime Video over the Roku Channel. It’s akin to Apple (AAPL) owning its own app store and promoting its own apps.
Now, Roku wants in on the action.
Going It Alone
Roku makes most of its money by selling ads, not hardware. For this reason, it’s critical that Roku controls the audience experience, creating a platform consumers count on as their portal to content.
To do so, Roku has long produced streaming boxes, dongles, and even co-branded TVs powered by Roku’s software. However, these products rely on hardware from manufacturing partners like Walmart (WMT) and TCL (TCLHF), limiting the company’s influence on user experience.
Now, Roku has announced two types of branded TVs that will use its tech both inside and out. Although details of the deal are sparse, Roku will reportedly command final say on the design of the branded TVs.
The Roku TV
Along with the announcement, Roku introduced two models of TVs: the lower-priced Roku Select, starting at $119, and the higher-end Roku Plus, ranging up to $999. Both smart TV options are slated for release in spring 2023 and will come with streaming options, inputs, and free live TV.
For Roku, these TVs will be critical as the company attempts to carve out a larger share in the streaming market. For consumers, the stakes aren’t quite so high, but hey – if streaming were to become even more convenient, we wouldn’t complain.
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.