After Failed App Launch, Sonos Pivots to Premium Video Streaming Device
Sonos faced significant challenges in 2024, with a problematic app rollout costing the company an estimated $100 million in revenue. This led to CEO Patrick Spence's departure and delayed several product launches. Now, Sonos is pivoting towards a new direction with a video streaming device.
Sonos home theater system setup
The company's high-end video streaming box, codenamed Pinewood, is currently in development. Expected to cost between $200-$400, it will compete with Apple TV, Google Chromecast, Roku, and Amazon Firestick. The device features:
- Android-based operating system
- Multiple HDMI ports with passthrough technology
- Universal search capabilities
- Integrated Sonos Voice control
- Support for external devices (game consoles, Blu-ray players)
- Compatibility with Sonos speaker systems for surround sound
The physical design is minimalist - a black square slightly thicker than a deck of cards. The higher price point compared to competitors is justified by its HDMI switch functionality and integration with existing Sonos equipment.
The app issues also impacted the launch of Sonos' AirPods Max competitor, the Sonos Ace headphones, and delayed the release of the Sonos Arc soundbar. While engineers continue working to achieve feature parity between the old and new apps, interim CEO Tom Conrad (former Pandora CTO) is set to address investors about the company's future direction.
US Capitol building with American flag
This strategic pivot towards video streaming represents Sonos' attempt to unify home entertainment systems while recovering from recent setbacks. The success of this premium-priced device will likely determine the company's position in the competitive streaming market.
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