Roku increases prices of streaming devices by as much as 60 percent due to the memory shortage affecting the living room.

      Roku has increased the prices of its entire lineup of US streaming devices by as much as 60 percent, attributing the rise to a global memory shortage driven by demand from AI data centers. Price hikes range from $10 to $50 per device, with the Streaming Stick 4K seeing the largest increase, going from $50 to $80, which is a 60 percent jump. The Roku Ultra and Streambar SE have both risen from $100 to $150, while the entry-level Streaming Stick increased from $30 to $40, and the Streaming Stick Plus from $40 to $60.

      Although Roku has not released a public statement regarding the price increases, an executive mentioned to The Desk that the adjustments are due to shortages in memory and other components stemming from the surge in AI. Currently, the devices can still be found at their previous prices on Roku's US website marked as a "sale," but it's unclear how long these prices will remain available. Pricing for international markets, including the UK, has not yet changed, but increases are likely to follow soon.

      These price hikes are significant as streaming devices are typically at the lower end of consumer electronics, where absorbing component cost changes is particularly challenging. For instance, Apple discontinued its $599 Mac Mini earlier this year due to unsustainable DRAM costs, and other companies such as Samsung, Google, and Qualcomm have either raised prices or hinted at future increases recently. While a Roku Streaming Stick 4K uses considerably less memory than a phone or laptop, the current cost of DRAM has risen dramatically compared to a year ago. Thus, for a product priced at $50, a doubling of component costs poses a serious threat.

      Roku holds about 28 percent of the US connected TV platform market according to Parks Associates, with its devices utilized by over 100 million households globally. The same memory reallocations that are challenging affordable smartphones are now impacting streaming devices, where maintaining a price point under $50 has historically been crucial. Fox's acquisition of Roku for $22 billion was announced in June, with the deal expected to finalize in the first half of 2027, pending regulatory approval.

      For consumers who have delayed purchasing a streaming device, the industry's message is clear: purchase now or face higher prices later. The memory shortage is anticipated to continue into 2027 as chip manufacturers prioritize high-bandwidth memory for AI servers over the standard DRAM needed for other products.