LAS VEGAS – Streaming video platform Roku announced Wednesday that it plans to make its own HD and 4K televisions as competition heats up in the market for smart TV operating systems. But Roku stock dipped on the news.
Roku previously has licensed its TV operating system to second-tier television makers like TCL, Hisense and Sharp. But its partners have added sets that use rival operating systems from Amazon and Alphabet's Google. The big TV brands like LG and Samsung have their own operating systems.
All are seeking to capture a larger share of the market for streaming video, including subscription and advertising-supported services as well as transactional video on demand.
Roku historically has made streaming sticks and set-top boxes that plug into any TV. But consumers today want a simpler, integrated solution for their streaming needs, analysts say.
Roku Stock: TVs Go For $119 to $999
The new Roku Select and Plus Series TVs will be available in the U.S. beginning this spring. The lineup will include display sizes spanning 24- to 75-inches with retail prices ranging from $119 to $999. Roku will offer 11 different models.
"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," said Mustafa Ozgen, Roku's president of devices. "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."
Roku announced its first-ever Roku-made TVs at the CES 2023 tech conference.
On the stock market today, Roku stock climbed 4.4% to close at 42.35.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.