*By Hope King*
Roku is out with new hardware to help grow its...software business.
The streaming TV company launched two new wireless speakers Monday designed to work with pretty much only Roku TVs.
Roku says the speakers will only work with TVs made by its manufacturing partners ー such as TCL, Sharp, and Hisense ー and not with TVs plugged into a Roku box. But in reality, the company's VP of Product Management Mark Ely said they could be used with Bluetooth connected devices, such as a phone or tablet.
“They also include a Bluetooth radio…so you can stream and playback through the speaker,” he told me.
Pre-orders for the new Roku TV speakers began Monday with a promotional price of $150. The price will increase starting next week to $180. Shipping will begin in October when prices go up to $200. The wireless speakers also come with a TV remote and a touch remote, both with voice control only for Roku TV.
The announcement comes a few months after Roku saw its platform business surpass its device business, in term of percent of revenue, for the first time during the first quarter of this year.
The distinction of the speakers' compatibility may seem like a fine point, but for a company competing with evermore wireless speaker brands such as Sonos, and smart speakers from Amazon, Google, and Apple, it’s one that should be made. After all, how many connected speakers do people need in their homes, especially if they can’t all work together? To that end, Roku’s software inside the speakers could enable wider usage in the future.
“We’re always upgrading those systems,” said Ely. “Even the very first Roku TVs we shipped back in 2014 have the latest software.”
To be clear, Roku is not trying to compete directly with the growing smart speaker market here. The company instead is trying to make it easier for existing Roku customers to listen to music, shows, and movies through something other than their TV speakers.
“Our goal is to make Roku TVs the best TVs,” Ely said. “Sound is a critical part of that.” He went on to say that “great sound \[means\] a more immersive experience, and that drives our business overall.”
As of the end of the [first quarter,](https://ir.roku.com/static-files/8b04826b-95a6-49c4-82a6-c3e6ffa30f25) Roku saw platform revenue of $75.1 million ー about 55 percent of its total revenue and more than double what it was the year before.
Ely said he expects the new speakers to add to that growth because the company is focused on “delivering a great streaming experience \[through\] really innovative hardware products.”
“The better streaming experiences we can deliver, the more that drives platform engagement, and that drives the growth of our business,” said Ely.
Shares of Roku closed down about 1 percent Monday. The stock is up about 82 percent since it began trading on the NASDAQ last September.
For the full segment, [click here.] (https://cheddar.com/videos/roku-introduces-wireless-speakers-to-hardware-line-up)
In recent years, extreme weather events like flooding and wildfires have become more frequent, and more severe - and scientists say global warming is to blame. Climate crises could leave people in need of help, and that's where Global Rescue steps in. The crisis response firm employs former Navy Seals and Army Rangers to rescue travelers from climate-related emergencies. Global Rescue CEO Dan Richards joins Cheddar Climate to discuss.
Cloud-based AI-powered writing assistant Grammarly recently raised $200 million in a funding round that values the company at $13 billion. The funding will be used to help Grammarly achieve its goal of becoming more ubiquitous, as the company says it wants to be the go-to writing assistant for wherever people type. Grammarly also says it aims to solve what it calls one of the most critical problems facing people and businesses today -- ineffective communication. Grammarly global head of product Rahul Roy-Chowdhury joins Cheddar News' Closing Bell to discuss.
The Competition and Markets Authority in the UK moved to block Facebook parent company Meta from acquiring the image sharing platform Giphy after saying advertisers and consumers would be adversely impacted. Hatem Dhiab, managing partner at Gerber Kawasaki Wealth & Investment, joined Cheddar to break down the decision and noted that the CMA's order could also halt other big tech firms from making similar purchases in the future. "I think this is going to be true for Facebook, it's going to happen for other big tech companies — Amazon, perhaps Google, so it's interesting that the UK is starting this wave," he said.
Namita Dhallan, Chief Product Officer at Brightcove, joins Cheddar to discuss how artificial intelligence and machine learning are creating room for more personalization in video, and how these technologies are shaping the future of the video tech industry.
NASA indefinitely delayed a spacewalk to repair an ISS antenna, citing concerns about space debris. It was unclear if the warning from the space agency to astronauts aboard the ISS was related to the recent destruction of a non-functioning Russian satellite.
Jack Dorsey has officially stepped down as CEO of Twitter.
In a statement -- he says he is leaving because the company is ready to move on from its founders. Tom Morton, Global Chief Strategy Officer, R/GA joined Cheddar's Opening Bell to discuss the implications of the move.
Mike Proulx, VP and research director at Forrester, joined Cheddar to talk about what Jack Dorsey's departure from Twitter as CEO means for the social media platform. He noted that while Dorsey had been the face of the company, "he's been a part-time CEO" since also taking on the leadership position at Square. Stepping down from leading Twitter allows his replacement Parag Agrawal, the former CTO, to be a dedicated leader of the company. However, Proulx noted that Agrawal faces headwinds on policy and political ramifications that will come with the job.
The UK's Competition and Markets Authority blocked Facebook parent company Meta's acquisition of the image sharing platform Giphy, stating that the deal would harm UK advertisers and social media users. Meta responded and said that it is considering an appeal.
