Technology and Science24 July, 20262 min read
Roku Raises Streaming Hardware Prices 50% To 60%, Including Streaming Stick And Roku Ultra
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Streaming devices' prices rose across the lineup, up to 60% higher. Notable increases include Streaming Stick to $40, Stick Plus to $60, Ultra to $150.
Roku price hikes
Roku raised prices across its streaming hardware by 50% to 60%, increasing the Roku Streaming Stick from $30 to $40, the Roku Streaming Stick Plus from $40 to $60, the Roku Streaming Stick 4K from $50 to $80, the Roku Ultra from $100 to $150, and the Roku Streambar SE from $100 to $150. The Verge said the cheapest HD Streaming Stick is now priced at $39.99 instead of $29.99, and it reported that the Roku Ultra now costs $149.99 up from $99.99. Ars Technica reported that Roku updated its website with the new prices while it continued selling at old MSRPs labeled as sale prices, listing the Roku Streaming Stick at $40 (formerly $30) and the Roku Streaming Stick Plus at $60 (formerly $40).
“Fox announced plans to acquire Roku last month.”
Roku’s own store is holding a sale that keeps some devices at their previous prices, but The Desk said customers are limited to three sticks or set-top boxes per transaction. The Verge also tied the timing to Fox, saying Fox announced plans to acquire Roku last month.
RAM shortage blamed
Roku’s price increases are being attributed to a RAM shortage, with an executive telling The Desk that the increase is a direct result of the RAM shortage. Android Police quoted Roku CEO Anthony Wood from an April earnings call saying, “[T]he Roku TV operating system requires significantly less memory and storage than all our competing platforms,” and it added that Wood said the bill of materials cost for Roku devices is relatively low. The Desk described the broader cause as “the artificial intelligence rush,” saying the company raised prices to address shortages in computer memory and other components.
CNET framed the explanation as an AI-influenced “RAMageddon,” and it noted that Apple also blamed rising memory costs for its price hikes. The Verge reported that a Roku executive who spoke with The Desk cited the ongoing memory shortage as the reason for the price changes.
What it means next
Roku’s hardware price changes come alongside other companies’ adjustments, with Android Police saying Apple raised the price of the Apple TV (Wi-Fi) 54%, from $129 to $199, and the Apple TV (Wi-Fi + Ethernet) 67%, from $149 to $249. CNET said the new Roku prices follow an even more dramatic increase for the Apple TV 4K, which went from $129 to $199, and it added that the 128GB version will now cost $249. The Desk said some retail partners like Best Buy and Amazon will maintain legacy prices on Roku sticks and pucks until supplies are replenished, while other retailers will raise prices once current stock runs out.
Ars Technica reported that Roku is raising prices in response to the shortage of memory, as well as “other components, caused by the artificial intelligence rush,” and it described the shift from May when Anthony Wood said the memory shortage is “great” for Roku. CNET reported that Roku was acquired by Fox for $22 billion and said representatives for Roku did not immediately respond to a request for comment.