Roku Inc.
ROKU
recently made a major move into the UK market with the launch of a range of low-price TVs powered by the Roku operating system. This is in partnership with U.S. electronics manufacturer, RCA.
Roku has a long-running relationship with RCA in the United States but expanding this relationship to the UK represents a significant moment for both brands. The new RCA Roku models join Roku-carrying TVs already available in the UK from Hisense, TCL and Metz.
The 32-inch RR32HD1 will feature an HD-ready resolution and cost just £129.99, the 40-inch RR40FD1 will carry a full HD (1920×1080) resolution and cost just £169.99, and the 55-inch RR55UD1 will feature a 4K resolution and cost a mind-bogglingly cheap £269.99. These prices include 30 days of free access to discovery+ too (if you buy and activate one of the new TVs by Jan 15, 2023).
All three of these new RCA Roku TVs will feature fully localized versions of the Roku smart platform, complete with key UK apps such as Freeview Play, the BBC iPlayer, ITVX, All 4 and My5.
Partnerships to Expand Roku TV Distribution to Fend Off Competition
Roku has significantly expanded partnerships and tie-ups in the UK in 2022. In September, the company teamed up with Germany-based brand Metz to offer affordable smart TVs, after working with Hisense and TCL to bring its software to the UK TV market.
Markedly, Roku faces stiff competition from other companies that provide TV streaming devices, including
Apple
’s
AAPL
Apple TV and
Alphabet
GOOGL
owned Google TV.
Apple’s newest digital media player, the third-generation TV 4K’s interface powered by tvOS is ad-free and like an iPhone interface on a bigger screen, which allows for easy navigation. Two key additions in Apple TV 4K include the use of A15 Bionic, the same chip as the iPhone 13 series and iPhone 14 series besides support for HDR10+, the most advanced high dynamic range technology.
The Google TV app is starting to roll out a new update with the ability to cast TV shows and movies from multiple streaming services from one location, as well as a revamped remote for Android TV OS devices.
In its current form, the Google TV remote opens up as a separate page, but the new UI has a collapsible panel that minimizes into a bottom bar UI which shows what content is playing and what TV you’re connected to.
Nevertheless, Roku is riding on surge in premium subscription signups for the Roku Channel. The company has incorporated 11 free channels from
AMC Networks
AMC
, focusing on some of the best contents from across its cable and streaming outlets. This will include a new AMC Showcase channel. AMC Showcase will spotlight many of AMC’s most well-known dramas, including
Mad Men
.
In addition to these new sports and entertainment offerings, the Roku Channel is also providing users a new, free
Great British Baking Show
channel tied to the premiere of the reboot of
The Great American Baking Show
on Friday, Dec 2.
Launch of third-party streaming channels, including Peacock, Disney+ and HBO Max, is aiding user growth.
Moreover, streaming hours growth is likely to boost TV streaming advertising on Roku’s platform, driving advertising revenues in the near term for this Zacks Rank #3 (Hold) company. In the third-quarter 2022, users streamed 21.9 billion hours of content on the Roku Channel, an increase of 1.1 billion over the previous quarter. The service added 2.3 million incremental active accounts in Q3, bringing its global total to 65.4 million.
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