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Thread: Roku CEO Claims the Apple TV is a "Money Loser"

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  1. #1
    MMi Staff Writer Akshay Masand's Avatar
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    Default Roku CEO Claims the Apple TV is a "Money Loser"


    Roku CEO and founder Anthony Wood spoke at the Inaugural Code/Media event held by Re/code and called Apple TV “a money loser,” saying it is essentially an accessory for the iPad. The statement comes as Apple is said to be preparing a new version of the Apple TV, which will enable a streaming TV service for users.

    Apple TV is essentially an accessory for the iPad. They lose money, which is unusual for Apple. If you're losing money, why would you want to sell more?
    Wood also made a statement regarding Amazon’s upcoming set-top box, which is to be launched next month:

    Every year about this time, the Amazon box comes up that they’re about to launch. And the new Apple TV is about to launch … we’ve been competing with Apple TV for six years now, and every year, we’ve grown. We’re in the TV platform business. Our goal is to be the operating system for TV.
    The CEO commented on how the sales of the Roku doubled after Apple decided to decrease the price of the Apple TV from $249 to $99 two years ago. Although the Apple TV is growing in popularity, a report last year from Parks Associates indicate that the Roku is more popular than Apple’s set top box- as 14% of U.S. households are using streaming media boxes.

    The Information reports that the new version of the Apple TV will have a dramatic overhaul interface and will combine TV listings with apps and videos from the web. It is rumored to have gaming and cable box-like capabilities as well as previously mentioned TV streaming integration. There is no set date yet for the release of the new Apple TV, however, it is expected to launch sometime in the near future.

    Source: CNET

    Twitter: @AkshayMasand

  2. #2
    Livin the iPhone Life thazsar's Avatar
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    Not quite sure how it's a 'money loser' considering it was one of Apple's best-selling products of last year. But who am I to argue....?!?!

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    Livin the iPhone Life Silverado1987's Avatar
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    Yeah for 6 years they've grown but never beaten. Personally I just don't like roku.

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    Livin the iPhone Life thazsar's Avatar
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    Quote Originally Posted by Silverado1987 View Post
    Yeah for 6 years they've grown but never beaten. Personally I just don't like roku.
    I've never tried Roku. I just don't understand why they're saying the ATV loses money...

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    My iPhone is a Part of Me thevmax's Avatar
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    Quote Originally Posted by thazsar View Post
    Not quite sure how it's a 'money loser' considering it was one of Apple's best-selling products of last year. But who am I to argue....?!?!
    ...the profit margin.

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    Livin the iPhone Life bigboyz's Avatar
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    Roku has a streaming device. Yes a period came after that statement cause that is all they have going on. Apple has an eco-system, software and hardware. Also, the APTV is expected to get a major update before the end of the year. Could finally get an AppStore on it with games to boot. The ROKU is much cheaper than the APTV. Like Android, they are trying to undercut. I feel Apple will gain ground once we see that update.

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    My iPhone is a Part of Me luvmytj's Avatar
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    I have a couple jailbroken ATV2's and one Roku. For me they serve different purposes in my household. The Roku is in the bedroom where the wifey can operate it easier due to a remote that has buttons and the headphone jack in the remote is a winner. Mainly Netflix and Time Warner app. My Roku is to new to crack so my ATV's connect to our all-Mac house and I have XBMC on them. I like them both for different reasons. The Roku's UI is horrendous but functional, just barely, so that Roku guy shouldn't be so smug as there are plenty of complaints in the Roku camp too. The cost and target audience are different between them too. I like and enjoy them both. Tried a Chromecast and that was definitely not for me.

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    iPhoneaholic
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    Somebody is clearly scared!

    But his comments call into question the quality of the Roku products. If he is saying that Apple must be losing money on Apple TV at $99 a pop, how cheap and crappy must the Rokus be to be turning a profit at half the retail price of Apple TV??

    The “accessory for iPad” comment that is total BSbecause apple TV can be used completely standalone from any other apple product, and he must know that. So this is clearly him just trying to smear Apple’s product because he is afraid of it and can’t think of any legit criticisms to shy people away from it.

    And who cares if it’s not making money?? It’s still a win/win since Apple makes money from selling content and the consumer wins because they’re getting a quality product at below cost!!

    Pathetic. Just pathetic. I hope he’s able to sob himself to sleep at night.

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    iPhone? More like MyPhone SpidermanAPV's Avatar
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    Apple: "Last year we made $1,000,000,000 on ATV."
    Roku: "Apple isn't making anything on ATV."

    ... Seems consistent me!

  11. #10
    iPhone? More like MyPhone buttamix's Avatar
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    Quote Originally Posted by thazsar View Post
    Not quite sure how it's a 'money loser' considering it was one of Apple's best-selling products of last year. But who am I to argue....?!?!
    I know saying its a money loser is a bit much

    Quote Originally Posted by SpidermanAPV View Post
    Apple: "Last year we made $1,000,000,000 on ATV."
    Roku: "Apple isn't making anything on ATV."

    ... Seems consistent me!
    Lol

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    Livin the iPhone Life thazsar's Avatar
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    Quote Originally Posted by SpidermanAPV View Post
    Apple: "Last year we made $1,000,000,000 on ATV."
    Roku: "Apple isn't making anything on ATV."

    ... Seems consistent me!
    Hahahaha!

  13. #12
    iPhone? More like MyPhone Slim J's Avatar
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    The Roku works just fine for me. I've had mine for just over a year now and love it. I also don't see tht getting an Apple TV would be useful for me since I've purged all Apple products out of my life

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    Green Apple
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    The product that is almost exactly like our product but better is a money loser. Good one Roku.

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    My iPhone is a Part of Me politicalslug's Avatar
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    Quote Originally Posted by Slim J View Post
    The Roku works just fine for me. I've had mine for just over a year now and love it. I also don't see tht getting an Apple TV would be useful for me since I've purged all Apple products out of my life
    You don't use any Apple products and yet you are trolling on this Apple-centric website? I'd tell you how pathetic that is, but I suspect you already know.
    They can have my jailbreak when they pry it from my cold dead fingers.

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  17. #15
    iPhoneaholic
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    Quote Originally Posted by politicalslug View Post
    You don't use any Apple products and yet you are trolling on this Apple-centric website? I'd tell you how pathetic that is, but I suspect you already know.
    HAHAHAHA!

    Thank you for saying that. I thought the exact same thing immediately. These trolls are so pathetic. They need to get out and get a life, or at least spend their time on site about products they actually use!

  18. #16
    iPhone? More like MyPhone jwil736's Avatar
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    You don't need an apple product to want to stay up to date on the latest.

  19. #17
    My iPhone is a Part of Me hogcia's Avatar
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    I have 3 roku units in my household and I love them. Roku has a channel store, games, it's cheaper and I can plugin my external hard drive, and watch my own mp4 or mkv movies on it. Apple TV can't do nether of those. Sorry folks, don't hate.

  20. #18
    iPhoneaholic Donnutt's Avatar
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    My friend bought a Roku as a streaming device for his cabin. I have over 900 movies in mp4 format from DVDs, bluerays, and even some VHS tapes that I have recorded over the years. The "awesome" Roku will play no more than 20% of them. It's fully updated, it just won't play. Meanwhile, I brought up an older ATV 2 that I had, it not only plays all the movies, it streams the audio to the airport express connected to the stereo system across the room. If you are vested in the Apple framework, ATV is fantastic.

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