April 18, 2018
Shares of streaming media device manufacturer Roku April 18 closed down nearly 12% after Best Buy announced it would start embedding Amazon Fire TV software into branded and third-party smart TVs. Roku shares closed at $31.72 per share.
Roku, which helped create the SVOD market with a branded Netflix player in 2008, had been including its software in Best Buy’s Insignia TVs.
Now, Best Buy is planning to bow 10 4K UHD televisions with Amazon’s Fire TV Edition, including units from Toshiba. And Best Buy for the first time will sell Chinese-made Insignia TVs on Amazon.com.
Roku’s operating system ranked No. 2 in North America behind Samsung’s mobile Tizen operating system created in 2012, according to IHS Markit.
“Roku TVs are available at Best Buy and across all the other major retailers, making it easy for consumers to choose from dozens of Roku TV models,” said Tricia Mifsud, VP of communications, said in a statement to The Wall Street Journal.
The share price drop is likely temporary considering Roku’s stock gained 9% April 17 following Netflix’s record Q1 fiscal results. A majority of domestic subscribers to the SVOD behemoth do so via a Roku device and/or app.
Earlier this month, Roku announced that Sanyo-branded smart TVs would begin using the Roku TV platform. Other manufacturers using Roku include China’s Hisense, Hitachi, RCA, Sharp and TCL.
Roku reports first quarter results May 9.