Roku CEO Calls Apple TV a 'Money Loser', Says Product is 'Essentially' an Accessory for iPad

[MrMichaelJames]

Roku's Problem

Is this line right here:

"Our goal is to be the operating system for TV."

I don't think anyone WANTS roku built into their tv. Usually in the past the apps built into tv's are crap, the processor is too slow, they never get updated and they are buggy. I personally would rather buy a new roku every 2-3 years at $99 a pop to get updated hardware and abilities than have to buy a new tv because the built in sofware doesn't run fast anymore because its become bloated and isn't supported.

 

[Rootus]

apple tv was there for years. i didn't even know roku existed. if it was so great, we should have heard about it, no?

Most of us have. If you're a die hard MacRumors weenie and Apple apologist, it's entirely possible you haven't bothered to explore the tech world outside your little box. Thankfully for you, however, Apple most assuredly *has* heard about Roku, otherwise we'd still have the lame ATV that was originally released. Roku still blows it completely out of the water, and that will probably remain true (not sure why you guys still think the first-mover advantage for Apple's walled garden in smartphones will translate to everything they touch...) but it has definitely forced Apple to try and catch up.

 

[Fattytail]

Either Tim has to go all in or pull Apple TV off the market because its really becoming an embarrassment for Apple.

I'd love an embarrassment that made me over $1 billion every year.

 

[Hastings101]

Oh good! I enjoy it when someone comes out and criticizes a product when its not yet found its feet.

I look forward to this guys opinion when the AppStore comes to AppleTV.

It's been like... seven years and Apple still has failed to use the device to its full potential. I mean there's so much Apple TV could do and does absolutely none of it. I'll gladly take this back if they ever do smarten up and throw an App Store on there and other features but until then I'm agreeing with the Roku guy - it's an almost worthless product.

 

[MH01]

I thought Apple has made close to $1 Billion in Apple TV? Correct me if I'm wrong... but how's that' a Money Looser??

Too much envy Anthony Wood?

comes to 142 million per year in sales. Now the question is, what is the profit from that? at a rough guess I would say $30 million profit per year, and 210 million in seven years.

its really bugger all to be honest. So not a money looser, but compared to the other apple products, poor performance.

Q4 2013, apple pulled in 37.5 billion in revenue alone.

http://techcrunch.com/2013/10/28/ap...-5b-revenue-up-4-yy-7-5b-profit-and-8-26-eps/

Shows how much iphones and ipads bring in!!

 

[johncrab]

When competitors trash what you are doing, you know you are doing something right.

 

[jm001]

A billion dollars is a money loser? First of all Apple TV has always been a "hobby" for Apple, not taken that seriously until it hit the billion dollar revenue mark. All this talk from the CEO of Roku is what people do when they're nervous about the competition. Roku does what Roku does and that's all. Apple can easily afford to make their Apple TV a hobby for years and years. They've got so much more to offer in terms of products. As a hobby you can experiment more and not worry about profit margins too much. Wait till Apple TV offers gaming AND it's own app store. Roku can feel Apple breathing down their backs.

 

[bozzykid]

I'd love an embarrassment that made me over $1 billion every year.

People have estimated the $1 billion based on sales estimates. However, that is not profit. Like the Roku CEO said, it is doubtful they are making much money if any on these sales (he believes they are even losing money). So the aTV is much different than most Apple products, like the iPhone, which are huge profit makers.

 

[willcapellaro]

I'm lost here, I have never used my Apple TV with an iPad, what would you do with it that you cannot do direct to the TV with the remote?

I'm sure others have answered you, but you can push any video, audio, or photos to the TV from the iPad/iPhone, or mirror the screen.

Convenience factor. Any iOS device on the wifi network can push a video, great for sharing with family/friends.

 

[Orlandoech]

People have estimated the $1 billion based on sales estimates. However, that is not profit. Like the Roku CEO said, it is doubtful they are making much money if any on these sales (he believes they are even losing money). So the aTV is much different than most Apple products, like the iPhone, which are huge profit makers.

THANK YOU. Finally someone who understands.

 

[giantfan1224]

If ATV loses money and the CEO of Roku doesn't know why Apple would want to sell more of them in the near future, then I think Roku might be in trouble.

 

[brewcitywi]

Roku

I have never heard of the roku before today. Perhaps the CEOs comments were meant to do just that. However, I'm happy with the Apple TV and waiting for the next generation.

 

[Orlandoech]

It's been like... seven years and Apple still has failed to use the device to its full potential. I mean there's so much Apple TV could do and does absolutely none of it. I'll gladly take this back if they ever do smarten up and throw an App Store on there and other features but until then I'm agreeing with the Roku guy - it's an almost worthless product.

Couldn't agree more. The ATV simply just falls short on so many levels. Its capable of so much more and Apple doesn't give it to us. As soon as they do, I will considering going back to an ATV over my Roku. Until then, AirPlay isn't enough to sway me.

Apple TV is inferior, plain and simple. Unless you ABSOLUTELY have to do AirPlay, Roku is a much better choice on many levels.

----------

I have never heard of the roku before today. Perhaps the CEOs comments were meant to do just that. However, I'm happy with the Apple TV and waiting for the next generation.

Change your homepage from the Apple start up page and explore once in awhile

----------

Roku is a great product and Roku 3 is the best one yet.


http://www.businessinsider.com/roku-3-review-2013-3

http://www.gadgetreview.com/2013/04/apple-tv-vs-roku-3-comparison.html

http://www.digitaltrends.com/home-theater/google-chromecast-versus-roku-3-versus-apple-tv/#!BI5RS

http://thewirecutter.com/reviews/roku-3-best-streaming-box/

 

[TheMTtakeover]

I would never buy any streaming device. When I pay for something, I want something tangible in return which is not heavily reliant on the Internet and my download quota. I prefer a physical copy instead of DRM and region restrictions, which I refuse to accept and will not support. I control and decide where to play, no one else. I pay I play my way. Plus I prefer Blu-Ray, but not downloading 40GB per movie. Hell even the iTunes movies are not BD quality either, so why would I use their service?

I can buy a BD movie, make my own backup copy with no region restrictions, no DRM, play where and when I want, no downloads required, and have the original disc for a backup and BD quality as well. So why would I use the Internet route when Im paying more for less and I have to obtain it myself?

Couldnt't have said it better myself!

 

[KhrisGarcia]

People have estimated the $1 billion based on sales estimates. However, that is not profit. Like the Roku CEO said, it is doubtful they are making much money if any on these sales (he believes they are even losing money). So the aTV is much different than most Apple products, like the iPhone, which are huge profit makers.

The build cost has been said to be about $65. This doesn't include other associated costs (marketing, returns, etc).

Either way, one might be interested to know how much revenue their getting out of the Apple TV through iTunes and Subscriptions. I'm sure they're making plenty of money off of the Apple TV.

I would never buy any streaming device. When I pay for something, I want something tangible in return which is not heavily reliant on the Internet and my download quota. I prefer a physical copy instead of DRM and region restrictions, which I refuse to accept and will not support. I control and decide where to play, no one else. I pay I play my way. Plus I prefer Blu-Ray, but not downloading 40GB per movie. Hell even the iTunes movies are not BD quality either, so why would I use their service?

I can buy a BD movie, make my own backup copy with no region restrictions, no DRM, play where and when I want, no downloads required, and have the original disc for a backup and BD quality as well. So why would I use the Internet route when Im paying more for less and I have to obtain it myself?

Why would YOU do it? You wouldn't. Most normal people like the simplicity of clicking "rent" and then watching something.

I'm more like you... which is why I have 3 Rokus and an Apple TV running Plex (PlexConnect for the aTV), Amazon Prime, Netflix, and Hulu memberships. Works great for our family. 200 Blu-Ray movies via plex and everything else via streaming subs.

 

[Cmdrx3]

For those saying they have never heard of Roku, you either

a. Don't know very much about the market.
b. Have your head buried so far in Apples butt you don't come up for air often enough to hear about it.
c. Both of the above.

Just because you have never heard of it, doesn't mean they are a small player in the market hanging on to Apple's coattail for publicity. Here's a thought, and I know this is a hard fact for some Apple fawnboys to get their head around but...Apple aren't the only people who make great products. I know it's hard to accept, so take a minute to let it sink in. Generally an ATV will fit in better with the Apple ecosystem which is only to be expected but the Roku is easily the better box by a country mile. Maybe when the ATV is no longer a "hobby" that might change but until then.. Roku every time.

 

[mazz0]

An accessory for the iPad? About the only time I use the iPad ( or iPhone ) with the ATV, is when the remote goes missing....

All the time then? (Sorry if that jokes been made already, I couldn't be bothered reading eight pages of comments!)

 

[RadioGuy01]

I have an iPad.. and a Roku 2XD downstairs, and a D-link Boxee for the TV in my bedroom.

I bought both from a pawn shop used for $50.. and I use 'em for streaming Netflix and watching the occasional free movie on Crackle.

That's it.

Sure, I like Apple products.. but I could care less about games on my TV (the Roku came with Angry Birds, and the controller works similar to that of a Wii controller) I think I played that once just to see what it was all about.

If I was going to buy a NEW streaming device, I'm going to buy whatever device offers the widest variety of streaming services.

I did have a decent Sony BluRay player that had tons of streaming options built in, and a PS3 style interface.. but it was laggy and clearly underpowered, so I gave it to a friend.

I like the Apple TV interface. I like the Roku interface. I suppose if I was more into streaming media directly from my Apple products i'd be more interested in Apple TV.. but at the end of the day, all I really want is something to reliably put Netflix on my TV screen.

And with most new TV's coming with that feature built in, I suspect when I buy a new living room TV in the next year or so, my Roku will be off to Craigslist.

 

[macfacts]

I accept that Roku products have more functionality and are possibly of better quality than Apple products. It just puzzles me that Roku's CEO would explicitly name the competition at an event where he's supposed to be talking up his company's products.

When Apple first showed the iPad Mini, the whole presentation was about it vs the Nexus 7.

Also, this mythical TV from Apple has been vaporware for many years. The current AppleTV is also very feature limited, can't play all video formats, can't work with non-apple devices, can't run ios apps.

 

[n8mac]

I have been using a Wii to stream netflix and youtube to my TV but am getting tired of the 480 video. I am trying to decide between a Roku and an ATV, however these CEO comments actually sway me towards the ATV .

I might hold off for now though as I feel the ATV could do more, like gaming, an App store, and more channels. I don't mind paying more for that. I hope has something up their sleeve.

 

[carjakester]

I love my apple tv, even if all i use it for is to airplay, its worth it.

 

[iMaven]

Roku FTW

I enjoy using my Roku so much that I barely watch regular TV. Roku has so much content (over 1000 channels/apps, including International channels, games, YouTube and Amazon Prime) and they continue adding more channels every day.

If ATV could offer that much content and stream at 1080p like Roku, I'd buy ATV; but since they don't, I'm sticking with Roku.

 

[Amnak]

I would like to know how well Roku box streams. Even when I have low wifi my picture is HD on my ATV. When I use one of the 3 other devices for Netflix( PS4 , internet connected blu ray player or internet connected TV ) none of them stream as smoothly in the same location.

 

[Parasprite]

I too am going to make myself unpopular here..

I have an Apple TV 2 and while it worked okay, running Plex on it was just too unstable. Ended up purchasing a Roku and it has been flawless since. I received an Apple TV 3 as a gift from my company which I ended up selling. I've since moved my original Roku to the bedroom and have a Roku 3 on my main TV. My Apple TV 2 has been sitting there unplugged for quite some time.

I know this site is very pro Apple, and I love most Apple products, but the ATV is not one of them. AirPlay is the only thing the Roku lacks that I miss. The remote is garbage IMO and I love the Wifi Direct remote of my Roku 3.

Pro-Apple forum dweller here.

I didn't even get the Roku and my ATV 2 is still gathering dust. Honestly the remote is the only part I liked, just wish it had deeper integration on OS X like it used to (yes, I know there are probably programs that can do this). Everything the Apple TV can do, I found easier to do on my Mini right from iTunes. I ended up nixing it when I got a 1080p-comparable monitor and it made less sense to play videos off of it.

If you didn't know, jailbroken ATV 2s are easily going for $2-300 on eBay right now and have been for months. Even unjailbroken ones are still selling for $100-150 since nobody has figured out how to jb ATV 3 yet. It may be worth looking into.

 

[jmac049]

It all depends on what you are going to use you Apple TV/Roku for. I have both and I use the Roku much more than the Apple TV, mainly because I use PLEX to stream movies from my iMac to my TV and Apple does not offer PLEX. I have been using the Aple TV more often though to mirror shows from various network apps on my iPad. I will say if you have a Mac or iPad or iPhone, an Apple TV is a must in the house.

They are both great. Personally, I like the Roku a little more. I have three of them. Whatever your use, just remember that competition is good and this will only make these companies make better products.