Roku Manufacturing Walmart-Branded Streaming Video Devices

Lost in Roku’s recent impressive financial results was disclosure that the streaming media device manufacturer and operating software platform is working with Walmart to roll out branded hardware.

“We recently agreed with Walmart to offer several new Roku devices, including audio [speaker] products to their customers under their Onn brand,” CEO Andy Wood and CFO Steve Louden wrote in the shareholder letter. “This is in addition to Roku TVs and Roku players already sold through Walmart.”

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Roku manufactures OEM streaming hardware and sticks for Comcast/Sky-owned Now TV, among other European customers. The OS platform will be at the heart of NBC Universal’s pending streaming service.

Roku also remains one of the largest smart TV  brands due to its embedded OS platform in myriad third-party TVs, including Philips, RCA, JVC, Hitachi, Sharp, TCL and other Chinese-made units — many sold in Walmart.

The Roku platform revenue continues to drive the company’s growth at the expense of loss-leading hardware sales.

Platform (ad-supported) revenue in the second quarter (ended June 30) skyrocketed 89% to $167.7 million, while streaming device (hardware) revenue increased 24% to $82.4 million from $66.5 million last year.

Indeed, The Roku Channel has become one of the largest AVOD platforms delivering free, largely third-party catalog content.

With Walmart reportedly killing efforts to produce original content and a branded streaming video service around Vudu, partnering with Roku could help the world’s largest brick-and-mortar retailer remain relevant in the digital age.

It could also help Roku grow its 30 million active monthly accounts.

 

Roku Inks JVC to Smart TV Program

Roku announced an agreement with China’s Shenzhen MTC Co. to build smart TVs under the JVC brand featuring the Roku operating system. The JVC smart TVs are expected to ship in the U.S. later this year.

“[The] Roku streaming platform … is incredibly easy to use and offers access to countless movies and TV episodes all from the home screen,” John Araki, chief technology officer of JVC, said in a statement. “We are looking forward to marrying our longstanding history of innovation with Roku’s popular smart TV platform as we aim to improve our customers’ everyday life with smartly designed products making life a little more fun.”

The Roku TV licensing program offers TV OEM partners a cost-effective way to build smart TVs connected to the Internet. Roku provides hardware reference designs, so TV brands can offer smart TV options at competitive price points.

The Roku operating system provides consumers with access to an ever-growing library of content as well as regular, automatic software updates.

“We look forward to working with MTC to grow the JVC smart TV presence in the U.S.,” said Chas Smith, GM of Roku TV & Players. “We know most TV manufacturers will license a TV OS and are proud of our low-cost purpose-built solution and the level of collaboration and support that we offer our partners while delivering a superior experience to consumers.”