After Years Of Licensing Its Interface To Smart-TV Makers, Roku Will Make Sets Of Its Own

04.01.2023 - 21:29 / deadline.com

After entering the smart-TV sector years ago by licensing its interface and brand, Roku now plans to design and manufacture its own line of TV sets.

The streaming company today said the Roku Select and Roku Plus Series TVs, with 11 models ranging from 24 to 75 inches, will be available this spring. Retail prices will range from $119 to $999.

In its early phase as a company, Roku had made a name for itself by making connected devices — various dongles and “pucks” enabling streaming on screens made by third parties. In 2014, the company embarked on a new effort to team with smart-TV makers like Hisense and others on sets featuring the Roku user interface. Helped by attractive price points, those sets soon accounted for about one-third of the total smart TV market in North America.

The manufacturing news, coming as CES gets its annual tech showcase under way this week in Las Vegas, cheered investors. Roku’s beaten-down stock jumped 5% in mid-day trading to near $43. Once a pandemic darling, Roku shares fell precipitously once Covid lockdowns lifted and declined a startling 82% in 2022 due to advertising weakness and macroeconomic headwinds.

In a note to clients, Guggenheim media and tech analyst Michael Morris called Roku’s decision to make TVs “a key strategic move to driving market share growth.” He also noted the company’s expanded relationship with Walmart via the retailer’s line of smart home products.

The entry into manufacturing is the reverse of what smart-TV makers Samsung, Vizio and LG have done in recent years. While continuing to manufacture electronics, they have expanded their streaming presence across original programming and FAST channels, looking to create advertiser-friendly complements to their