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ROKU Expands the TV Ready Program, Adds New Partners

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Roku (ROKU - Free Report) announced the global expansion of its Roku TV Ready Certification Program.

The expansion of the certification program makes it easier for third-party audio partners to join the platform seamlessly.

New partners of the company added through the tenure of 2021 include JVC, Element, Pheanoo and Philips. Polk Audio and Westinghouse are scheduled to join the platform in early 2022.

The program has also been expanded internationally with several audio partners launching in Canada, Mexico and the U.K.

Focus on TV Footprint Expansion to Boost Top Line

In the past few years, the sale of Roku TV models by the company’s TV brand partners has materially contributed to its active account growth, streaming hours and platform monetization efforts.

Roku TV models are sold through traditional brick-and-mortar retailers including their online sales platforms and online retailers. To a lesser extent, Roku players are sold directly via the company’s website and internationally through distributors.

Roku announced its TV Ready Program in January 2020, with official audio partners TCL North America and Sound United. The initiative allowed consumer electronics companies to pair up with Roku TV, providing a well-rounded entertainment experience to consumers.

Later in the year, Roku added audio partners Bose and Hisense to its TV Ready Program.

In June 2021, TCL Electronics and Roku announced the launch of TCL Roku TV models in the U.K. as part of the TV Ready initiative.

The TVs came with Roku’s built-in operating system, offering customers several free and paid streaming channels, customizable home screens and automatic updates. It also allowed consumers to search content across top channels, with results ranked by price and private listening through the free Roku mobile app. The TVs could also be controlled securely and conveniently using voice commands via Alexa, Siri or Google Assistant-enabled devices.

In September 2021, the Brazil-based joint venture electronics company SEMP TCL entered into a partnership with Roku.

As part of the deal, TCL extended its global partnership with the company to launch TCL Roku TC models in Brazil. Additionally, it had plans to introduce a new lineup of SEMP Roku TC models in the country.

Building on this momentum, Roku plans to expand its TV footprint in Latin America, Chile and Peru with Roku TV models in the next few years.

In 2020, Roku generated $510.6 million player revenues with a 31.6% year-over-year increase in the volume of players sold. Nearly one in three smart TVs sold in the United States were Roku TVs.

In third-quarter 2021, the player segment witnessed a 26% year-over-year decline in player revenues. This was majorly due to the global supply chain disruptions that impacted the U.S TV market. As a result, some of the Roku TV OEM partners witnessed inventory channels, which affected TV sales in the reported quarter.

Zacks Rank and Stocks to Consider

Currently, Roku holds a Zacks Rank #3 (Hold)

Some of the better-ranked stocks in the Zacks Consumer Discretionary sector are Bluegreen Vacations (BVH - Free Report) and Funko (FNKO - Free Report) , both sporting a Zacks Rank #1 (Strong Buy), and Brunswick (BC - Free Report) carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Bluegreen Vacations, a private vacation ownership company, has a trailing four-quarter earnings surprise of 695.01% on average.

The Zacks Consensus Estimate for Bluegreen Vacation's current financial-year sales and earnings per share (EPS) suggests an increase of 27.47% and 199.29%, respectively, from the year-ago period’s tallies.

Funko, engaged in manufacturing a wide range of consumer products, has a trailing four-quarter earnings surprise of 110.7%, on average.

The Zacks Consensus Estimate for Funko's current financial-year sales and EPS suggests an increase of 48.3% and 240.5%, respectively, from the year-ago period’s tallies.

Brunswick, engaged in developing, manufacturing and marketing a wide variety of products, has a trailing four-quarter earnings surprise of 27.51% on average.

The Zacks Consensus Estimate for Brunswick's current financial-year sales and EPS suggests an increase of 33.24% and 60.95%, respectively, from the year-ago period’s tallies.