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Roku will wind down smart home sales and refocus on streaming
Roku told Lowpass, as reported by Engadget and Techmeme, that it will stop selling smart home hardware after Fox's takeover and keep supporting devices already sold.
Roku said it will stop selling smart home hardware and concentrate on streaming, days after Fox completed its takeover of the company, Engadget reported, citing Lowpass1,2.
A Roku spokesperson told Lowpass, "We're sharpening our focus on Roku's core mission: being the top streaming platform," Engadget reported1. The company said it will wind down sales of smart home hardware and continue support and services for products already sold1,2.
Only two smart home items remained in stock on Roku's web store, the Indoor Camera 360° and the Video Doorbell & Chime, Engadget reported1. Light strips and bulbs, other cameras, smart plugs and a home monitoring system were listed as out of stock, and Lowpass said many third-party retailers, including Amazon, were largely limited to refurbished units1.
Roku began selling smart home gear in 2022 as rebadged Wyze products and started shipping its own hardware last year, Engadget reported1. Lowpass, as summarized by Engadget, said Roku had been pulling back for months and had stopped mentioning the products in earnings reports earlier this year1.
In its last earnings report before joining Fox, Roku said device revenue rose 33 percent year over year in the third quarter while hardware losses more than doubled, from $22.9 million to $48.6 million, which it tied largely to higher memory costs, Engadget reported1. Device revenue covers Roku's own players and TVs, not sets other companies make with the Roku brand, and the company said its own TVs exceeded expectations last quarter1.
Techmeme's roundup of the Lowpass report likewise said the wind-down came after Fox closed the acquisition and that existing devices would still be supported2. Engadget put the Fox deal at $22 billion1. What Fox, if anything, directed about the product line was not described in the coverage1,2.
Sources
How it’s being reported
2 sourcesRoku will stop selling smart home devices and refocus on streaming
Product stockouts, 2022 Wyze rebadges, and third-quarter hardware losses
Engadget reported Roku will exit smart home sales after Fox's deal, citing a Lowpass interview, inventory shortages, and hardware losses in the last earnings report.
Roku says it will wind down sales of smart home hardware to focus on streaming, days after Fox closed its acquisition; it will keep supporting existing devices (Janko Roettgers/Lowpass)
The Lowpass scoop and timing after Fox closed the acquisition
Techmeme summary of Janko Roettgers' Lowpass report that Roku will wind down smart home hardware after the Fox close and keep supporting existing devices.
Leaves out Earnings figures and remaining SKUs on Roku's store