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Roku (ROKU) Grows Device Suite With Streaming Stick 4K & 4K+

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Roku Inc. (ROKU - Free Report) recently announced the launch of two streaming sticks, namely Roku Streaming Stick 4K (MSRP $49.99) & Roku Streaming Stick 4K+ (MSRP $69.99).

Roku Streaming Stick 4K provides 4K portable streaming services with an enhanced Wi-Fi range. It has a quick 30% + booting service in 4K, Dolby Vision and HDR10+ picture. The same also has an improved Wi-Fi system, which is twice faster than the available Wi-Fi speeds. The device has a direct plug-in system behind the TV, which makes it convenient to use. The voice-controlled remote along with the TV setup aids users with easy volume adjustment and rapid search of the desired content.

Apart from the above-mentioned features, Roku Streaming Stick 4K+ added Roku Voice Remote Pro. It provides a rechargeable battery system along with a voice activation system, which helps users find the remote in case it is lost.

These products will be available at the retail stores and also online from the middle of October, primarily in the United States, followed by Canada, the U.K., Mexico and in Latin American countries during the months succeeding October.

The company also developed its operating system to Roku OS 10.5 so as to provide its customers with a quick update on the Roku mobile app, surround sound and many more.

Roku, Inc. Price and Consensus

Roku, Inc. Price and Consensus

Roku, Inc. price-consensus-chart | Roku, Inc. Quote

Active User Growth Drives Advertising Revenues

The ability to access free and premium content on the same platform is a huge attraction for subscribers to buy Roku devices. Consumers of the Roku platform now have more choices including Disney’s (DIS - Free Report) Disney+, Comcast’s (CMCSA - Free Report) Peacock, Discovery+, HBO Max, Peacock and Netflix (NFLX - Free Report) among others.

The company ended the second quarter of 2021 with 55.1 million active user accounts, up 28% year over year, driven by the popularity of Roku streaming players and Roku TV models.

Roku earns most of its advertising revenues from its own platform Roku Channel by selling advertisements including commercial ads. In fact, it benefited from the portion of pay-per-view revenues and subscription revenues from the services provided through its own platform. The ARPU (average revenue per user) in the June quarter came in at $36.46 million, up 46% year over year.

Moreover, the company’s expanding international presence in 20 plus countries like the U.K., Mexico, Brazil, the United States and Canada is expected to remain a key catalyst.

Roku faces stiff competition from other companies that provide TV streaming devices like Apple TV, Google TV and Amazon.

Nevertheless, Roku is riding on its surging premium subscription signups for its Roku Channel. Moreover, streaming hours growth is likely to boost TV streaming advertising on Roku’s platform, driving advertising revenues in the near term for this currently Zacks Rank #1 (Strong Buy) company. You can see the complete list of today’s Zacks #1 Rank stocks here.

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