Great way to make sure I never buy a Roku TV!
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This would kill their entire TV division...
Especially when streaming becomes 4k standard and we get the glory days of cheap screens again when 1080p was the best.
The reason cheap 4ks aren't as good as all about the processor to upscale to 4k. If the source is already 4k cheap screens become surprisingly good.
Which means no one would pick $50 one time savings for a lifetime of ads on anything the TV is used for.
Short term tho, this will make money, and quarterly profits are all that matters when focus is on stock price. Roku is going to run themselves into the ground with this.
Heve they been bought by private equity? This would be an on point extraction scenario for private equity, but is a loser move for any leader trying to maintain a steady brand reputation for roku's legit UI strengths.