Technology

Roku Just Got More Expensive — and AI Is Part of the Reason

Martin HollowayPublished 7d ago5 min readBased on 5 sources
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Roku Just Got More Expensive — and AI Is Part of the Reason

Roku raised prices on its streaming devices on July 24, 2026. The increases range from $10 to $50 per device. The Roku Ultra and Streambar SE had the biggest jump, going from $99.99 to $149.99 each. The cheapest device, the HD Streaming Stick, went from $29.99 to $39.99. The Streaming Stick Plus rose from $39.99 to $59.99, and the Streaming Stick 4K went from $49.99 to $79.99 The Verge. The Desk, which first reported the increases, noted that some devices rose by as much as 50 percent The Desk.

A Roku executive blamed the ongoing memory shortage for the price changes. Memory is the electronic component inside devices that lets them store and access data quickly. The global memory shortage is expected to last through 2027 and beyond, with memory makers prioritizing demand from AI companies over other buyers The Verge.

At the time of the price hikes, Roku was running a sale that offered some devices at their original prices The Verge. That means there is a temporary gap between the new list prices and what consumers can actually pay at checkout, though the sale pricing will not last forever.

Roku is not the only company passing higher component costs to consumers. Apple raised prices across its devices, including the Apple TV set-top box, in June 2026 The Verge. Two of the largest streaming-hardware companies raising prices within weeks of each other suggests the memory shortage is hitting the entire category, not just Roku.

The memory shortage is itself a result of the AI boom. The companies that make memory chips — mainly Samsung, SK Hynix, and Micron — are directing their limited factory output toward the highest-paying customers. Those customers are AI companies building large data centers. Think of it like a factory that can only make so many bricks: when a few wealthy buyers order most of the supply, everyone else has to wait in line and pay more. A company making $30 streaming devices is near the back of that line.

For Roku, the timing is complicated. Fox Corp announced plans to acquire Roku about one month before July 2026, in a deal worth approximately $22 billion Reuters. Roku is also coming off a strong financial quarter for its platform business, which is the side of Roku that makes money from advertising and content rather than hardware. In April 2026, Reuters reported that Roku raised its annual platform revenue forecast, projecting 2026 platform revenue growth of 21 percent to $5 billion, up from a prior forecast of 18 percent growth to $4.89 billion Reuters. The company is scheduled to release its second quarter 2026 financial results after market close on August 6, 2026 Roku Newsroom.

The broader picture is that the memory shortage is expected to last through 2027 and beyond, which means these higher prices are unlikely to be temporary. A $10 increase on a $29.99 device is a 33 percent jump in what the customer pays. That kind of change affects how people buy. Shoppers looking at the cheapest devices are the most sensitive to price, and some will delay their purchase, pick a different brand, or simply use the apps already built into their smart TV instead of buying a separate streaming device.

Roku's platform revenue, the money it earns from advertising and content distribution, is growing faster than its hardware sales. The raised forecast to $5 billion in platform revenue shows that Roku's financial future depends on that advertising and content money, not on how many devices it sells. The hardware is really a way to bring people onto the platform. If higher prices slow device sales but each person who does buy still generates ad revenue, the company may be fine. If higher prices noticeably slow down how many new accounts get created, that is a bigger concern.

The Fox acquisition adds another layer of uncertainty. A $22 billion deal means Roku's new parent company will have its own expectations about pricing and profit margins. Whether Fox sees Roku's hardware as an important way to gain new users, or as a low-profit business to be cut back, will shape decisions that have not been made yet.

Roku will report its Q2 2026 earnings on August 6. Those results come before the price increase took effect, but the earnings call will be the first chance for executives to talk about the new pricing publicly and answer questions about how the memory shortage and the Fox deal fit together. For anyone following the streaming-hardware market, that call is the next thing to watch.