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Analyst: Roku’s New Lineup Puts Others on Notice

Roku’s Sept. 26 unveiling of its new product lineup, with six models priced from $30 to $130, both Apple and Google have been put on notice, according to Paul Erickson, senior analyst at IHS Technology.

Both the low-end Roku Express ($30) and high-end Roku Ultra ($130) will help Roku make a move toward streaming media dominance, with the former tackling Google’s Chromecast, and the latter going after the Apple TV and Amazon Fire TV. The Roku Express handles 1080p streaming and mounts on the TV, while the Ultra will handle 4K streaming up to 60fps and support for high dynamic range (HDR) video.

“Roku has also dropped the cost of entry for both 4K and HDR support.,” Erickson said. “This will cause positioning concerns for Amazon’s Fire TV, which offers 4K at a higher price than Roku Premiere, and lacks HDR support at the same price tier as Roku’s Premiere Plus. All of Roku’s 4K models deliver 4K at 60 frames per second, which Fire TV is also incapable of.

“While Apple’s $149 Apple TV enjoys innately strong and largely price-insensitive traction with the iOS device user base, Roku’s delivery of both 4K and HDR at price points lower than today’s fourth generation Apple TV will draw consumer attention to the lack of both in Apple’s offering. Apple may thus adjust its current Apple TV pricing scheme downward earlier than planned once channel inventory of the previous third generation Apple TV is finally exhausted.”

Roku’s other move: the new lineup of devices handle support for more than 100 sources, up three times from this point last year, and handle more channels than anyone, with more than 3,500. “Roku’s latest product line refresh is an overhaul of the company’s long-held product naming scheme and price/product tiers along two main vectors — affordability and picture quality,” Erickson said. “The revision is well-timed, given the rapid drop in 4K TV set pricing and increased competition in the streaming video device market.” The pricing of Roku’s models could pressure Google and Amazon to drop the prices of their streaming devices, he added.

IHS Technology expects 14 million units from Roku will be shipped this year, hitting 20.4 million by 2020, putting it ahead of Apple TV’s global shipments of 11.8 million units this year, and just behind Google Chromecast, which will ship 17 million units.

“Roku stands for streaming innovation and today we’re celebrating the biggest player launch in our company’s history, including the introduction of the Roku Express player which delivers a complete streaming experience for a shockingly low price of $29.99,” said Anthony Wood, Roku founder and CEO. “Whether consumers simply want fast HD streaming via an inexpensive device or are looking for a top-of-the-line player with advanced features such as 4K and HDR, Roku is an easy choice.”