• by Wayne Friedman , Staff Writer, January 9, 2023

You've got to hand it to Roku. While some have been writing off the streaming app distribution service platform, they keep expanding -- vertically, horizontally, and otherwise into the TV world.

Moving deeper into technology, Roku is designing and building its own smart TV sets. This moves the company from its effort in branding Roku TV sets on TV sets manufactured by Sharp, TCL, Hisense, RCA, Philips, JVC and other TV builders.

So all this might complete the cycle for the streaming distribution platform -- all the way from producing TV shows, creating TV channels (The Roku Channel), its own smart TV operating system (through set-top boxes and incorporated onto TV sets) and now with its own smart TV sets.

Whether all this will work -- or will result in smart business growth -- is anyone’s guess. And yet it is somewhat fascinating to watch as the business continues to see massive disruption of direct-to-consumer (D2C) digital TV businesses -- many of which continue to lose money.

In moving laterally in the device arena, Roku seems to believe revenue from digital devices is still important (even if set-top-box streaming devices have been losing steam to an extent).

TV Watch has argued -- or wished -- in the past that other big digital media-centric companies like Apple would have moved into the TV space. But Apple has other ideas, such as putting efforts to grow all types of “services”.

Roku is not alone in its effort. Amazon is also designing and building its own smart TV sets. It had also only worked with partners until last year, when it launchedits first Fire TVs with Alexa built in.

Like Roku, it also has TV channels and apps: Amazon Channels, Amazon Prime Video, and of course, other digital devices. It also produces TV shows (“The Marvelous Mrs. Maisel” for one.).

Amazon's move into all related media business arenas may not seem that surprising. But Roku, for some, seems to be over its skis somewhat. Time will tell.

Comcast and Charter are also pushing their Xumo effort -- a Roku-like, Amazon Fire TV competitor -- with a new branded TV set manufactured by Element Electronics. 

Maybe it is all about innovation and furthering the business in a research and development mode here.

Mustafa Ozgen, president of devices for Roku, said in a release that the new Roku TVs “allow us to enable future smart TV innovations. The streaming revolution has only just begun.”

That’s just good positioning, a savvy marketing message, and hope.

In this current disrupted marketplace where it is hard to figure out where things are going, analysts might say having one hand in many media businesses is a good thing. 

Others could say just you should watch to make sure out your hand doesn’t get slapped. In the meantime, you can always use it to change the channel.