Roku Launches First High-End TVs in Search of Revenue Growth

(Bloomberg) -- Roku Inc., the maker of TV streaming boxes and software, is debuting its first high-end televisions in a bid to continue sales momentum for the company’s devices.

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In the spring, Roku will roll out 55-inch, 65-inch and 75-inch Pro Series TVs that will cost consumers as much as $1,500. The new televisions put Roku in competition with Samsung Electronics Co. and LG Electronics Inc., which offer several models in that price range. It’s a step up from the company’s current TVs — the Select and Plus — which top out at $999.

Roku announced the new models on Wednesday ahead of the CES technology conference scheduled for next week in Las Vegas.

The new TVs include a thinner design with a flat back for mounting on walls, improved picture quality and better audio for cinematic sound, the San Jose, California-based company said in a statement. Roku also said it would expand retail availability of its less expensive TVs, which are already sold at some stores such as Best Buy, and introduce a new AI-based system to automatically adjust picture quality.

Roku shares fell 1.8% at 9:34 a.m. in New York.

The new product line comes at a critical time for the company, which made its name in cheap streaming boxes that could plug into existing TVs. The stock has more than doubled in the past 12 months and revenue from Roku’s device unit has begun to revive. Analysts estimate sales of equipment gained 16% in 2023 after falling in consecutive years from a high of $510.6 million in 2020.

Roku generates more than 80% of its annual revenue from its streaming platform.

(Updates with shares in fifth paragraph.)

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