Roku raises streaming stick prices by up to 60 percent
Roku has increased prices on its streaming sticks by up to 60% due to a RAM shortage, while Fox announced its acquisition of the company for $22 billion.
Roku has raised the prices of its streaming sticks by as much as 60%, according to comments from the company's CEO. The price hike is linked to the global RAM shortage, which the executive noted is generally beneficial for Roku's business because its lower bill of materials cost advantage widens the gap with competitors.
The low cost of running Roku OS has helped the company win over TV OEMs and retailers. Apple also recently increased Apple TV prices, raising the 64GB version from $129 to $199 and the 128GB model from $149 to $249. However, Apple is traditionally a premium brand, while Roku has built its reputation on affordability. The company may find it harder to get consumers to accept higher prices for what have been considered budget products.
A Roku representative told The Desk that the company still believes its devices are competitively priced and is doing its best to offer deals. The price increases come weeks after Fox announced it is buying Roku for an enterprise value of $22 billion. The deal is subject to regulatory and shareholder approval and is expected to close in 2027.
