Roku unveiled its first-ever branded HD and 4K TVs designed and built by the company during the Consumer Electronics Show on Wednesday, marking its first foray into the TV manufacturing business.
The Roku Select and Roku Plus Series TVs will launch in spring 2023. The TVs will be available in 11 sizes ranging from 24 to 75 inches at retail prices between $119 to $999. All HD offerings will include Roku Voice Remotes, while all Plus Series TVs will come with Roku Voice Remote Pros.
Roku-branded TVs will offer an expanded audio ecosystem by leveraging its new wireless soundbar. Additionally, all models will continue to offer fan favorite features including Find My Remote, private listening and access to live TV and sports content.
“Over the past 20 years, Roku has been instrumental in what is now the mainstream way to enjoy a great television series, a classic movie, or live sports,” Roku’s Devices president Mustafa Ozgen said in a statement. “Our goal is to continue to create an even better TV experience for everyone. These Roku-branded TVs will not only complement the current lineup of partner-branded Roku TV models, but also allow us to enable future smart TV innovations. The streaming revolution has only just begun.”
The move comes as Roku is facing pressure from rivals such as Amazon and Google, which offer their own TV hardware. In addition, economic uncertainty prompted the company to lay off 200 people, or 5% of its workforce, in November.
Stephens analyst Nicholas Zanger wrote in a note to clients on Wednesday that the move “enables the company to better maintain control of its own destiny by forming more direct relationships with retailers and through attractive product pricing.”
“A Roku-branded TV expands the number of gateways to the consumer from two to three, insulates the company from the long-term threat of player obsolescence and TV OEM displacement,” Zanger wrote.
In the third quarter of 2022, Roku reported total net revenue of $761 million, including $670 million in platform revenue.
The company’s gross profit fell 2% year over year to $357 million and its average revenue per user grew 10% year over year to $44.25. As of the end of the third quarter, Roku reported a total of 65.4 million active accounts.
Shares of Roku climbed 6% during Wednesday’s trading session, but have fallen 80% in the past year.
