Roku has increased the prices of its streaming sticks by up to 60 percent, a move that contrasts with its long-standing reputation for affordability. This price adjustment comes amid a global memory shortage that has affected many tech companies, leading to increased costs for components.

Roku executives, however, believe their devices remain competitively priced due to their bill of materials cost advantage and the low costs associated with running Roku OS. This has historically allowed them to offer lower prices than competitors and secure partnerships with TV manufacturers and retailers. Despite the price hikes, a Roku representative stated that the company is still striving to offer competitive deals.

These increases follow news that Fox is acquiring Roku for an enterprise value of $22 billion, a deal expected to close in 2027, pending approvals. While other companies like Apple have also raised prices for their streaming devices, Apple is known for its premium pricing strategy, whereas Roku's brand has been built on budget-friendly options. The company faces the challenge of consumer acceptance of higher prices for what are typically considered entry-level products.