Roku Announces TV Brand Expansion, ‘Roku TV Ready’ Program

Roku announced that 15 TV brands will launch Roku TV models in Canada, Mexico, the United States and the United Kingdom in 2020.

Roku TV brands in 2020 include ATVIO, Element, Hisense, Hitachi, InFocus, JVC, Magnavox, onn., Philips, Polaroid, RCA, Sanyo, TCL and Westinghouse.

In Mexico, new partner brands InFocus, Polaroid and Walmart’s ATVIO will sell Roku TV models, while existing partner brand Westinghouse and others will extend their Roku TV offerings to Mexico. In addition, TCL and Hisense will expand their Roku TV offerings with new Roku TV models launching later in the year.

“2019 was a tremendous year for Roku TV, with more brands, retailers and consumers choosing the platform than ever before,” said Mustafa Ozgen, SVP and GM of account acquisition at Roku in a statement. “We believe that Roku TV represented more than one in three smart TVs sold in the U.S. during the first nine months of 2019, and the number of our licensees keeps growing.”

Roku also announced “Roku TV Ready,” a new program that allows consumer electronics companies to partner with Roku to help their products work seamlessly with Roku TV. The first partners under the program are TCL North America and Sound United, parent company to Denon, Polk Audio, Marantz, Definitive Technology and Classé, which will feature Roku TV Ready products for select brands later this year. Products under the program will display a Roku TV Ready badge on marketing materials to identify that they have been tested and certified to work with the Roku TV. Consumer electronics companies can add Roku TV Ready functionality at no additional cost to their products, according to Roku.

“Our goal is to make the TV experience incredibly simple, accessible and fun. Roku devices continue to delight millions of consumers for these reasons. And now with this new program we hope to make it super easy to setup and control soundbars and audio/video receivers using just a Roku TV remote,” said Mark Ely, VP, retail product strategy at Roku in a statement. “Meanwhile, consumer electronics brands benefit by offering their products in a more appealing way to our large and engaged audience of millions of active accounts.”

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“Denon is consistently at the forefront of technology trends and services. Our joining the Roku TV Ready program demonstrates a continued dedication to this ethos while offering consumers an incredible value, endless entertainment and new features delivered over time,” said Brendon Stead, SVP, product development at Sound United, parent company to Denon, in a statement. “The Roku TV Ready program enables Denon users to easily access Denon product features via the Roku TV Remote, among other features. In the name of seamless entertainment, this is a boon for watchers everywhere.”

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“TCL and Roku have been working to deliver incredible home entertainment innovation to consumers for many years and we’re thrilled to be extending our partnership to home audio compatibility,” said Chris Larson, SVP, TCL, in a statement. “As America’s fastest-growing TV brand, we’re focused on providing a first-class home theater experience and a big part of that is ensuring consumers know their TCL television will work well with other products throughout the home.”

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.”