Roku plans to launch its first high-end TVs in spring 2024, including the 55-inch, 65-inch, and 75-inch Pro Series for up to $1,500
Mark Gurman / Bloomberg :
Context & Ripple Effects
Roku’s move follows its 2023 decision to sell televisions under the Roku Select and Plus brands, extending a company-owned TV lineup that initially topped out below the new tier.
It also marks a deeper shift from Roku’s earlier model of supplying its TV platform to manufacturers such as TCL, Insignia, and Haier through Roku TV partnerships. A premium in-house set gives Roku more control over the hardware experience alongside its push for greater homescreen engagement.
First-order effects
- Roku adds a 55-, 65-, and 75-inch Pro Series at prices up to $1,500, placing its own hardware directly in the higher-priced TV segment.
- Buyers seeking a premium Roku interface will have a Roku-branded option rather than relying solely on sets from TV-manufacturing partners.
Second-order effects
- Roku TV licensees may face more direct competition from their platform provider in the premium aisle, increasing the importance of differentiating on display hardware, pricing, or brand.
- Roku can use a higher-end owned product to test and standardize the TV experience more directly, potentially influencing what customers expect from partner-made Roku TVs.
Third-order effects
- If Roku continues moving upward in owned hardware, its TV business could evolve from a platform-licensing model toward a hybrid model that combines licensing with selective vertical integration.
- That model would make control of the television’s interface and merchandising surface more central to competition than streaming-device pricing alone, though the scale of the shift depends on consumer adoption and partner response.
The trend: Roku’s Pro Series is part of a broader shift in which connected-TV platforms seek greater control of premium hardware as well as the software layer on the screen.