Key facts
- Roku is increasing prices on its streaming devices by up to 60%.
- The Roku Streaming Stick will now cost $40 (up from $30).
- The Roku Streaming Stick Plus will cost $60 (up from $40).
- The Roku Streaming Stick 4K will cost $80 (up from $50).
- The Roku Ultra and Roku Streambar SE will both cost $150 (up from $100).
- Roku attributes the price hikes to memory and component shortages caused by the AI rush.
Roku is significantly increasing the prices of its streaming devices, with some models seeing a jump of up to 60%. The company has updated its website to reflect these new prices, which are set to replace the current Manufacturer's Suggested Retail Prices (MSRPs) that are listed as sale prices. The Roku Streaming Stick now costs $40, up from $30; the Streaming Stick Plus is $60, up from $40; the Streaming Stick 4K is $80, up from $50; and the Roku Ultra and Roku Streambar SE are both $150, up from $100.
A bundle including a Streaming Stick Plus and a one-month subscription to Fox One has also seen its price increase, from a $25 sale price to an $80 MSRP and a $45 sale price. While Roku's own store is selling devices at these new higher prices, other retailers will continue to offer them at the lower rates until their existing stock runs out.
Roku attributes these price hikes to shortages in memory and other components, which it claims are being driven by the demand from the artificial intelligence industry. This stance represents an about-face from May, when Roku founder and CEO Anthony Wood described the memory shortage as "great" for the company, highlighting its bill of materials cost advantage due to its less memory-intensive Roku OS.
Other technology companies have also recently raised prices on their devices due to similar component shortages. Apple, for instance, increased the prices of its Apple TV boxes. However, Roku, which has built its brand on affordability, may face challenges in getting consumers to accept higher prices for products traditionally viewed as budget options. A Roku representative stated that the company believes its devices remain competitively priced.