TV Device Company Roku Raises $60 Million
Roku is a digital TV entertainment company that has raised $60 million in funding led by Fidelity. Hearst Corporation also participated in this round of funding. Previous investors that participated in this round include BSkyB, News Corporation, and Dish Network. Roku has raised a total of $130 million thus far.
Anthony Wood, the Roku CEO and founder, said that the funding will be used to sign up more partners to have their software installed as an operating software for upcoming smart TV products. Roku has sold around 5 million Roku boxes and sales are strongly accelerating. The company plans to generate strong revenues from their service business through movie rental services and a customized Roku version of Angry Birds.
Roku works with two dozen OEMs that are making over 3.5 million Roku-ready devices, mostly TVs. These devices will be able to support the Roku Streaming Stick. The Roku Streaming Stick is similar to a thumb drive that can connect to TVs through an HDMI link. The Roku Streaming Stick retails for around $99.99.
“Roku has a significant portfolio of investment and strategic partners with very successful global businesses. Their recognition of our brand success and belief in the Roku platform is a tremendous endorsement of our potential to shape the future television experience,” stated Wood.