roku's new wireless speakers are innovative, but not for everyone - wireless bluetooth portable speaker system
As a proof-of-
Concept of Roku (ROKU -Get Report)
The new wireless speakers are very interesting.
However, their potential market is not particularly large.
On Monday morning, Roku released a $200 TV speaker that only relies on a wireless connection to receive audio signals.
The speaker can play the audio output of the smart TV running the Roku operating system, or the audio output of the Bluetooth radio of the mobile phone or tablet.
The only wire connected to them is the power supply.
Roku announced that these speakers will provide an immersive audio experience for movies and TV shows, and often provide sound quality that competes with higher-cost speakers.
"The company also talked about a simple
Screen setting process, unique "automatic volume adjustment" and conversation-
Enhancements, as well as the ability to provide "perfect" wireless A/V sync with the Roku TV set.
The speaker represents the first product based on the recent
The Roku Connect platform is launched to create a speaker ecosystem for smart TVs running Roku OS.
They will be equipped with the new Roku TV voice remote control and the new desktop voice remote control called Roku Touch.
They will not start shipping until October. Pre-
Orders between July 16-23 will cost only $150;
The cost for the period from July 24-10 to 14 was $180.
Roku believes that its speakers are easier to use and more convenient than other speakers. Source: Roku. Of the 20.
Roku has 8 million active accounts at the end of the third quarter, and the speakers are only for consumers who access the Roku platform via smart TV instead of Roku streaming sticks or set-top boxes --top.
While Roku does have a healthy smart TV-
The company claims that every four smart TVs sold in the United States have one. S.
The first quarter was Roku-powered --
A large part of its user base is believed to rely on Roku sticks or suitstop.
Also, even in users of Roku
The question of whether Roku's speakers are appropriate will depend on the needs of consumers.
For example, those who are very concerned about bass performance may want a home theater system with a dedicated subwoofer, and those who want a real surround sound experience will want 5. 1 system.
Prices may also be a problem for some consumers.
While Roku's speakers are cheaper than most (though not all)5.
1 home theater system, it is not difficult to find decent speakers and 2.
A system of $150 or less.
Of course, it could be Roku or someone else.
Party speaker manufacturers using Roku Connect will roll out a set of speakers in time to meet the needs of those who want subwoofer or 5. 1 system.
In any case, it is worth noting that hardware sales are no longer at the heart of its profit strategy.
Hardware accounted for only 15% of Roku's gross profit in the first quarter, and it is not surprising to see this figure fall further in the coming quarters. As Roku's high-
Profit "platform" income--
It includes advertising, licensing fees, transaction cuts, and revenue streams for other software and services. -
Roku has chosen to operate its hardware business at cost or near cost.
By doing so, Roku has maintained a good competitive position with respect to Amazon, the top competitor. com (AMZN -Get Report)
This is also the pricing of its streaming stick and package
Tops is active and helps create a larger installation base that can make a profit through the platform revenue stream.
In this case, limited sales of Roku wireless speakers have little to worry about for Roku investors.
Even Roku Connect-
In the next few years, speaker-based products are usually sold to only a small portion of Roku users, but help to maintain their loyalty to the Roku platform, which is hardly a terrible result.
The previous version of this column states that Roku's wireless speakers cannot play non-
A Roku device connected to the TV.
The column has been corrected to state that the speaker can play Roku-
Smart TV. Amazon.
Com is the holding company of Jim Cramer action alert and member club.
Want to get an alert before Jim Kramer buys or sells AAPL? Learn more now.