Roku
plans to launch Roku-branded televisions later this year, expanding its push into the consumer electronics hardware market.
The company made the announcement Wednesday, in connection with the CES trade show taking place this week in Las Vegas.
Until now, Roku’s (ticker: ROKU) approach to the TV hardware market has involved licensing its operating system to TV manufacturers such as
TCL
and Hisense, and to
Walmart
(WMT), which sells them under its Onn house brand.
Producing Roku-branded TVs should allow the company to generate more revenue for each TV sold, and potentially give it new ways to better integrate the Roku software with the TV hardware and secure more retailer shelf space for Roku-capable TVs. It also puts Roku in direct competition with its TV licensees.
Roku has been producing consumer electronics hardware from its inception. Most people are likely familiar with the company’s family of “streaming sticks,” allowing any TV to access the Roku streaming platform. It also produces audio speakers and sound bars, and recently launched a line of smart home products, including security cameras and doorbells. Roku, which generates most of its revenue selling advertising both on the Roku Channel and on third-party channels, also dabbles in content production, including the recent film, Weird: The Al Yankovic Story.
Starting in the spring, Roku will sell 11 TV models in sizes ranging from 24 to 75 inches, with prices ranging from $119 to $999. All of the new TVs will include voice-capable remotes. The company is also launching a new soundbar intended specifically for use with Roku TVs.
Roku said that all innovations included in the new TVs will also be made available to current and future manufacturing partners. The company didn’t say where the new TVs will be sold.
Roku also announced a new reference design for televisions with OLED display screens.
Write to Eric J. Savitz at eric.savitz@barrons.com
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