In a strategic shift, Roku plans to make its own TV sets

According to a report in Insider, the platform is looking to make its own TV hardware.

The story is based on two different sources with different levels of familiarity with the plans. The person who participated in the focus group showed different models, feature sets, and names.

Second, the article cites an executive who says that making TVs has been on Roku's roadmap for over a year. The executive is quoted briefly and provides a little more detail, saying, "The analysis has been done. They recognized that owning the last bit of branding made a lot of sense, particularly if you are going into content."

The report claims that the supply constraints that have hit consumer electronics have driven Roku toward this strategy. In the company's last earnings call, its CFO said that the company missed its subscriber growth goals because of supply constraints in the TV market.

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Consumers have been moving away from the devices that were once known as the best for streaming, as they have purchased more and more smart TVs with streaming apps built in. In recent years, the company has made a lot of money by selling its software for smart TVs. The number-one smart TV OS is the operating system of Roku. The company makes money on ads and user data when its hardware or software refers subscribers to streaming services.

A move into TV hardware would allow the company to take a bigger slice of the pie and build a stronger connection to its users and customers. TV hardware is a slim-margin business compared to the worlds in which it operates. The path would not be a slam dunk.

The company doesn't comment on rumors or speculation.