I just had an argument with Google Bard about this. I asked Bard "What strategic reason could Roku have to get into home security"
Bard said to increase the customer stickiness of the Roku streaming platform.
I didn't buy it, so I demanded further explanation.
So Bard gave me this even more ridiculous answer:
"Roku could use data from its home security system to improve its streaming recommendations. For example, if a user is away from home for an extended period of time, Roku could recommend movies or TV shows that are related to travel or home improvement"
$ROKU is testing the waters to see how easy it is to cross-sell products & services to its customers (it's already a trusted household brand)
It wants to piggyback off of the growing home security market
It wants to create a seamless smart home experience
I have a scenario that is fun to read that could help explain this move:
"Imagine that Roku, a leading streaming device company, has seen a slowdown in sales growth in recent years due to increased competition in the streaming device market. As a result, Roku's management team is exploring new areas to expand their product offerings and revenue streams.
During their research, they discover that the home security market is growing rapidly, and there is a rising demand for smart home security solutions that can be easily integrated with other devices. Additionally, they realize that their existing brand recognition and customer base could give them a competitive edge in this market.
To test the waters, Roku decides to launch a pilot program where they partner with a leading home security provider to offer a bundled streaming device and home security system. The system allows users to control their streaming device and home security system through the Roku platform, providing a seamless and integrated smart home experience.
The pilot program is a success, and Roku sees an uptick in sales and customer engagement. They also receive positive feedback from customers who appreciate the convenience and ease of use of the integrated system.
Based on this success, Roku decides to enter the home security market and begins developing its own smart home security solution that can be controlled through the Roku platform. They invest heavily in research and development to create a product that is both high-quality and easy to use, leveraging their existing expertise in consumer electronics and user experience design.
With their new home security product, Roku is able to attract a new segment of customers who are interested in smart home security solutions. The product is also well-received by their existing customer base, who appreciate the added convenience and integration with their streaming devices.
As a result of this successful expansion into the home security market, Roku is able to diversify its revenue streams and reduce its dependence on the increasingly competitive streaming device market. Investors see this as a positive development and reward Roku with a higher valuation, which further fuels the company's growth and expansion into new markets."