Could Roku’s Smart Home Expansion Improve Smart Device Interoperability?
Roku, the smart TV box company, is apparently considering expanding into the smart home device market. According to a report, Roku is looking to include a combination of first-party products and interoperability with the existing ecosystem of smart home devices.
Roku has traditionally taken a more open, interoperable approach to its connected TV business, which could be advantageous for a possible smart home expansion.
On the other hand, smart home device makers such as Google, Amazon, Apple, and others have decided to join hands for a standard protocol that will help in unifying all devices thus making it easier for different smart home ecosystems to communicate with one another. The protocol is named Matter, which is a unified smart device standard that works alongside existing protocols like Wi-Fi and Bluetooth.
Roku’s major revenue is raised via digital advertising, licensing agreements, and subscription and transaction revenue shares. They are also the leading device choice for users wanting a smart TV. This experience will definitely set Roku apart from other smart home devices and assist in promoting the devices with more users – but at the cost of moving itself into the smart home device segment. Roku’s outsize reliance on advertising revenues could allow it to essentially subsidize the cost of its hardware and undercut competitors on price. Roku also has another advantage in terms of having direct partnerships with multiple streaming services thereby potentially capturing a larger market share.
Source: https://www.emarketer.com
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