Roku has announced that the prices of the latest video streaming player will be reduced as the company tries to fight off competition from Amazon and Apple. Consequently the newest Roku Ultra player will have its price reduced by 23% and will cost $100. Before a clearance sale that was held recently Roku Ultra was priced at $130. In the United States, Roku’s market share is 37%.
Roku’s other streaming devices are also being upgraded and their prices will range between $29 and $70. This comes a couple of days after Roku successfully went public and managed to raise $219 million in the process. The price of the company’s stock has also nearly doubled.
Despite having started on a strong footing as a public company, the market value of the streaming device maker is now $2.5 billion compared to its competitors Apple and Amazon whose market values are $800 billion and $462 billion respectively. Additionally Roku is yet to register a profit.
Despite being a minnow in several aspects compared to Apple the price reduction on Roku Ultra is likely to complicate matters for Apple in its bid to entice fans of video streaming with the Apple TV 4K which is an upgrade from the standard high definition. Priced at $180 Apple TV 4K costs almost double what Roku Ultra costs. Apple’s older standard definition streaming device was priced at $150.
Compared to Apple TV, Roku Ultra provides a wider variety of streaming channels though it is not compatible with Apple Music or the video store of the iPhone maker. Apple is depending on those services as a justification for the high price of its video streaming device since it has an ecosystem that consists of consumers using its products ranging from desktop computers to mobile devices such as iPads and iPhones.
But when compared to Amazon Fire TV, Roku Ultra is more expensive. Last week the online retail giant revealed that its newest Fire TV which is capable of playing 4K video will cost $70. Previously the device used to cost $100.
Roku’s price reduction on its streaming device comes at a time when Nvidia is rolling out a new version of its Shield streaming device which will have Google Assistant integrated into it. This will make it possible to use voice commands to locate and navigate besides also offering natural language search. The price of the Nvidia Shield will be around $180.