Roku to Make Its Own TV? Two Sources Say the Company is 'Exploring the Idea Seriously'

Urian B., Tech Times 21 February 2022, 09:02 pm

Roku, the popular TV-streaming platform, is now looking forward to going beyond what it is usually known for. The expansion will take the company past its current dongles and software deals in order to create its very own TV hardware.

Roku to Venture Into More than Just Dongles and Software Deals

According to a report by Business Insider, Roku is planning to expand its business from its regular dongles and software deals into actually being able to produce its own TV hardware as well.

As per the story by ArsTechnica, the story now looks to be based on two different sources, which, as per the report, have "different levels of familiarity" with the plans of Roku. The first source came from someone who participated in the company's focus group, sharing that they actually showed different models, names, feature sets, sizes, and of course, price points.

Company Executive Reveals More About the Effect of Supplies constraints

The second source, as cited by the article, is an executive who notes that being able to make their own TVs has actually been on the company's roadmap for more than a year. To add, the executive even gave a statement regarding the company's plans when it comes to creating their own TVs.

As per the executive, "The analysis has been done. They recognized that owning the last bit of branding made a lot of sense, particularly if you are going into content." As per the reports, Roku has actually been driven directly toward this particular strategy partly due to the main constraints on supplies that have hit the general consumer electronics industry.

Roku Makes Money by Selling Software for Smart TVs

Roku's chief financial officer gave a statement, seen on Protocol, during the company's last earnings call noting that the supply constraints that are going across the TV market were also considered a factor when it came to the company missing out on its "subscriber growth goals."

Most consumers know Roku best for its streaming boxes and dongles, but most consumers have been moving away from these types of devices as the age of smart TVs is now becoming more mainstream. Recently, the company has started making money "by selling its software for smart TVs.

Roku Makes Money from Ads and User Data as Well

Roku's operating system, in fact, has even become the "number-one smart TV OS." The company, of course, also earns whenever its hardware or software refers users to subscribe to Netflix as well as other streaming services.

To top everything off, Roku also earns from ads as well as user data. The company's move into TV hardware would also give Roku a chance at claiming a larger slice of the pie as well as build an even stronger connection directly to users and consumers.

TV hardware, however, remains challenging and is still a "slim-margin business" compared to what Roku is used to.

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Written by Urian B.