Roku CEO: Apple TV launch helped boost Roku sales

By on December 21, 2010, 9:00 AM
Roku has been selling inexpensive Internet TV set-top boxes since 2008, when it was only streaming on-demand content from Netflix, and has since diversified its offerings in terms of hardware and content. Reviews and customer response has been mostly positive but its devices have yet to reach mainstream status. You’d think that with Apple and Google making big moves into the segment this year Roku would be taking a big hit, but apparently that’s not the case at all.

According to Roku CEO Anthony Wood, the introduction of the Apple TV has helped raise awareness of the entire market, more likely because of all the attention Apple’s every move gets from the media rather than for the product itself, and at the same time this has helped consumers realize some of Roku’s advantages over its rivals -- such as the ability to play 1080p content with the $100 Roku XDS player from a variety of sources, including Hulu Plus.

Wood points out that Roku will probably have sold its millionth set-top box by the end of the year, cracking $50 million in revenue, and the company expects to top $100 million in sales next year. Amazon is a significant factor in Roku sales, contributing about 25%, with the Roku XD and XDS among the top-selling devices in the site’s electronics category.

Looking forward the executive says next year they’ll continue to push for broader retail distribution, offer more products via licensing deals (such as the new Netgear Roku device), and bring more content to its devices. But competition will only get harder with Apple expected to launch an App Store for Apple TV, Google TV getting some refinements and a bunch of hardware partners, and gaming consoles catching on as an entertainment devices.

User Comments: 4

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wcbert said:

I bought the Roku XD|S version three weeks ago. My TV can accept 1080p so many of the programs I like to watch are in HD. My only concern before I bought it was conneting it to the internet. I using WiFi, it was easy and I can stream HD with no problems.

So next month I pulling the plug on cable TV and save $100 a month. Nextfix, Hulu+ and other programs are a lot less than what the cable charges me and they offer programs I am interest in, watching them when I want to. Next month saving will go for another Roku box to have TV in the bedroom.

Guest said:

Roku box, 1080p on a 63in Samsung..And I am elated with the picture quality..Streaming Netflix; the image quality is excellent. And over a standard WiFi it takes about 30 seconds to download and then watch uninterrupted. I have Hulu, Twit and other content and Roku is great. So easy to set up even Bo Bo the Fool could do it. And the price is cheap. Look to Roku first, other boxes don't offer the content that Roku has.

Guest said:

I checked out Roku and it looks good however it's my understanding that it can only get a selection of channels, many you have to pay for. Boxie makes a device that can do the same thing however any web streaming content can be shown, so it doesn't have to be a partner. The big thing though is Boxie costs twice as much as Roku.

Tedster Tedster, Techspot old timer....., said:

I bought two Roku XD boxes and I couldn't be happier. Great choice and easy to set up. I use wifi g in my townhome and I get a decent signal throughout the house. My third tv is hooked directly to a computer in my downstairs bedroom so I don't need a 3rd box. Cable is outrageous and I'd like to dump it, but there are a few shows that I would miss.

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