Roku to Acquire Frndly TV for $185 Million, Expanding its Streaming Empire
Roku, a dominant force in the streaming hardware market and the operator of the popular, free Roku Channel, has made a significant move to bolster its content offerings with the acquisition of Frndly TV. The deal, valued at $185 million, marks Roku’s entry into the budget-friendly, live TV streaming arena, further solidifying its position as a key player in the ever-evolving digital entertainment landscape.
Frndly TV, which launched in the summer of 2019, quickly carved out a niche for itself by positioning itself as "the most affordable Live TV streaming service." True to its claim, the service provides access to a curated selection of over 50 channels, primarily focusing on family-friendly entertainment. This includes popular channels such as the Hallmark Channel, known for its heartwarming and feel-good content, the History Channel, offering a wealth of historical documentaries and programs, Lifetime, showcasing a variety of dramas and reality shows, and A&E, which broadcasts a mix of reality, crime, and documentary programming.
The appeal of Frndly TV lies in its affordability. Subscriptions start at a remarkably low price of $6.99 per month, when billed annually, and offer a 7-day free trial to entice potential customers. However, this basic subscription, while economical, comes with certain limitations. It streams content to only one device at a time and offers standard definition video resolution (480p), which may not be ideal for viewers accustomed to higher quality visuals. Furthermore, the Basic tier does not include cloud DVR service, a feature that allows users to record and watch their favorite shows at their convenience.
For viewers seeking a more enhanced viewing experience, Frndly TV offers two additional subscription tiers: Classic and Premium. The Classic tier, priced at $7.99 per month, provides HD resolution and the ability to stream content to two devices simultaneously. It also includes three months of DVR storage, allowing users to record a significant amount of programming. The Premium tier, the most comprehensive option, is available for $9.99 per month. It builds upon the Classic tier by offering nine months of DVR storage, a substantial upgrade for avid TV viewers, and the ability to stream content to four devices concurrently, making it perfect for larger households.
Roku’s CEO and founder, Anthony Wood, expressed his enthusiasm for the acquisition in a press release, highlighting the strategic benefits of integrating Frndly TV into the Roku ecosystem. "Frndly TV’s impressive growth and expertise in direct-to-consumer subscription services make it a compelling addition to Roku," Wood stated. "This acquisition supports our focus on growing platform revenue and Roku-billed subscriptions, with a live content offering our users love at an industry-leading price point."
The acquisition of Frndly TV aligns perfectly with Roku’s broader strategy of expanding its platform revenue and increasing its base of Roku-billed subscriptions. By offering a budget-friendly live TV option, Roku can attract a wider range of customers, including those who may be hesitant to commit to more expensive streaming services. This move also strengthens Roku’s position in the competitive live TV streaming market, as analyzed in TechHive’s in-depth coverage of the best live TV streaming services.
The financial details of the acquisition reveal that Roku is paying $185 million for Frndly TV. However, a portion of the payment, $75 million, is being held back and tied to the service "meeting performance goals and milestones over the next two years." This arrangement incentivizes the Frndly TV team to continue driving growth and achieving key objectives following the acquisition.
Importantly, Roku has indicated that Frndly TV will continue to operate independently and remain available on a variety of platforms beyond Roku’s own. This includes popular streaming devices and smart TV platforms such as Amazon Fire TV, Android TV, Google TV, Apple TV, Samsung, and Vizio smart TVs, as well as mobile devices running Android and iOS. This commitment to maintaining Frndly TV’s multi-platform presence ensures that existing subscribers will not be disrupted and that the service will remain accessible to a broad audience.
The leadership team at Frndly TV, including CEO and co-founder Andy Karofsky, is expected to remain with the company after the deal closes. This continuity is crucial for maintaining the momentum and expertise that have contributed to Frndly TV’s success. Karofsky and his team possess valuable knowledge of the budget-friendly streaming market and a deep understanding of their target audience, which will be invaluable to Roku as it integrates Frndly TV into its broader platform.
In addition to the acquisition news, Roku also released its first-quarter 2025 earnings report today. The report revealed a positive trajectory, with a 16-percent year-over-year increase in net revenue. However, the company’s forecast for second-quarter revenue fell slightly below Wall Street estimates, suggesting potential challenges ahead in the rapidly evolving streaming landscape.
Michael, TechHive’s lead editor, brings a wealth of experience to the coverage of this acquisition. With over 30 years of experience covering smart homes, home networking, and home audio/home theater, Michael possesses a deep understanding of the technology and trends shaping the entertainment industry. His background includes a BA in Multimedia Journalism, authorship of the book "Desktop Video Production," and recognition as "Best Online Review" by the Computer Press Association. Michael’s firsthand experience building a smart home and using it as a real-world product-testing lab provides him with unique insights into the user experience and the challenges of integrating new technologies. His current project of converting his 1890 Victorian bungalow into a modern smart home further demonstrates his commitment to staying at the forefront of technological innovation. His previous roles at CNET, PCWorld, Electronic Musician, and Maximum PC, along with his freelance contributions to New Media, Camcorder, and MacWeek, solidify his reputation as a seasoned and respected voice in the tech media landscape.
The acquisition of Frndly TV by Roku represents a strategic move to expand Roku’s reach in the streaming market and cater to a broader audience seeking affordable entertainment options. By combining Frndly TV’s budget-friendly live TV offering with Roku’s established platform and extensive user base, the company is well-positioned to thrive in the increasingly competitive streaming landscape. The continued availability of Frndly TV on multiple platforms and the retention of the existing leadership team further ensure a smooth transition and continued growth for the service. As the streaming industry continues to evolve, Roku’s acquisition of Frndly TV demonstrates its commitment to innovation and its ability to adapt to changing consumer preferences.
