Roku to Release New Line of Higher-End Smart TVs to Boost Revenues
Roku’s new smart TV line could feature price tags topping out at $1,500, helping it compete with manufacturers like Sony.
Roku is taking another step towards competing with some of the biggest original equipment manufacturers in the world. A year after the announcement that it was building and selling smart TVs for the first time, Roku is reportedly looking to unveil a new line of higher-end TV sets.
- Roku has announced that it is launching new, high-end smart TV sets this spring.
- The TVs will range in size from 55 to 75 inches, and top out at around $1,500 in price.
- More than 80% of Roku’s annual income is generated by its streaming platform The Roku Channel.
When Will Roku’s New TVs Be Available?
On Wednesday, Roku announced plans to release a new line of smart TVs to the public in the spring of 2024. The new product launch is all about maintaining the momentum the company saw in its device sales when it released its first group of smart TVs last year.
The new Roku TVs will be available in 55-inch, 65-inch, and 75-inch sizes. The sets will feature a thinner design, including a flattened back panel so they can be mounted. In addition, the new TV line will offer better picture and sound quality, the company confirmed to Bloomberg. Price-wise, these improved TVs will top out at around $1,500, according to Roku.
The launch of the new line of Roku smart TVs will be accompanied by a wider distribution for Roku’s Select and Plus Series sets, which rolled out last year at Best Buy stores. Roku launched the Select and Plus series TVs in 11 models total, with both HD and Ultra-High-Definition 4K options available.
Why is Roku Launching Higher-Priced TVs?
As Roku observes the trend of raising subscription prices and launching ad-supported tiers occurring at other streaming platforms, it finds itself in a bit of a quandary. Because of its ad-supported video-on-demand (AVOD) service, The Roku Channel already shows commercials, and because it’s free, the company has limited options for tweaking the platform to bring in more money. Indeed, The Roku Channel already accounts for more than 80% of the company’s annual revenue.
However, the launch of smart TVs last year helped reverse a trend of decreasing income from Roku’s device segment. Roku device sales peaked in 2020 at $510 million, but analysts estimate that revenue from that part of the company declined in both 2021 and 2022, before rebounding by 16% in 2023 thanks to the new smart TVs. Doubling down and creating a new line of higher-priced sets can keep that momentum building.
In the end, Roku is no different from any other streaming provider in its desire to enhance its profits. That’s the main driver behind its decision to create a line of new, higher-end TV sets that will launch in the spring of 2024, to sit alongside its other smart TVs and various streaming devices.
Roku Channel
The Roku Channel is a free live TV streaming service that provides 350+ live linear streaming channels and more than 80,000 free movies and TV shows. The library contains entertainment from several different decades, including some major hits.