Roku Plans to Launch Its Own TV Line
Roku On Wednesday, the company unveiled its Roku Select Series and Roku Plus Series TVs. These TVs are the first to be designed by and manufactured by the company.
The company will produce 11 models ranging in size from 24 to 75 inches. They will include Roku’s operating systems and a new Roku TV Wireless soundbar. The sets will be made available in the U.S. beginning in spring 2023.
Roku is making its first set, but the company also has existing sets that it made in partnership with other companies, as well its traditional hardware of Roku streaming boxes and sticks. Roku plans to release an OLED TV design for its partner companies.
“Over the past twenty years, Roku was instrumental in what is now a mainstream way to enjoy great television series, a movie classic, or live sports,” stated Mustafa Ozgen (president, devices, Roku). “Our goal is continue to make TV more enjoyable for everyone. These Roku-branded TVs will complement the existing lineup of partner-branded Roku TVs, but also enable us to make future smart TV innovations. The streaming revolution is just beginning.
Roku is facing difficult times in other areas of its business. The company’s advertising business was a success. Particularly challenging It warned that it was facing a decline in spending and that its advertising budgets would be under pressure throughout holiday season. Roku announced in November that it would be cutting its advertising budgets. 200 jobsIn an effort to “slow down” the company’s 2023 operating expenses growth rate due to current economic conditions, the company has slashed 5% of its workforce.
The company has been working hard to bring more original programming to its platform over the past year, including the premier of its original film. Weird: The Al Yankovic StoryThis fall, Daniel Radcliffe stars in the movie “The Assassination of Giuliani”. Wall Street is not yet keen on this strategy, especially in light of the growing operating losses. Roku shares have dropped 32 percent and 80 percent in the past three months, respectively.
While launching its own TV brand could bring in new revenue streams for the company, it could also increase competition for Roku which already faces competition from Amazon, Apple, and Google.
Despite this, Roku shares rose 5 percent in midday trading on Wednesday following the announcement. Guggenheim analysts already see this TV launch as a positive. They believe it is a key strategic move to drive market share growth and that Roku can leverage its e-commerce partnership to sell the products.
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