Roku lowers STB prices. Market going towards Free - Razor-Blade Strategy style?

written by: Gianluigi Cuccureddu

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Published on Wednesday, 01 September 2010 07:42

Engadget has reported that Roku has lowered the price of its SD Box to $59.
The standard HD version is lowered from $99 to $69.
The HD-XR is lowered from $129 to $99.

Is this in anticipation of the Apple TV news that most probably will be announced next week?
Market entrants like Google and Apple will shake the market upside down.

How long does it takes when STB's are offered for free?
Selling STB's is a losing proposition.

I do think the market goes towards a razor-blade strategy where the hardware is used to hook the bait and the content on top of it is revenue.

What do you think?