The new stick, which resembles a computer flash drive, should help Roku stay ahead of competitors, especially if rumors of an upcoming streaming media device from Amazon prove accurate, said Brett Sappington, research director for the research firm Parks Associates.

"The thought of Amazon getting into the market is pretty scary," Sappington said.

The Streaming Stick locks plugs into ports on the back or the sides of an HDTV monitor, making it less noticeable compared with the set-top box versions Roku has sold since 2007. Roku also boasts a deal with two television manufacturers based in China to embed its technology directly into two HDTV monitors later this year.

The Roku boxes and dongles stream video from about 1,200 online sources, including Netflix, Showtime, ESPN, Disney and YouTube. At launch, the stick can stream media from smartphones and tablets, but Roku said it will add the ability to stream content from a computer.

Roku is taking preorders on several sites, including Amazon, and plans to ship the device to customers and retail stores in April.

Roku leads Apple TV 40 to 24 percent in U.S. households that use a streaming video box, according to Parks Associates surveys.

But Apple is reportedly planning to launch a revamped Apple TV device. Sappington said Google's $35 Chromecast, which streams video fed through owners' computers or mobile devices to a TV, is helping raise consumer interest in such devices, although he expects similar streaming dongles to hit the market this year.

"It's smart of Roku to get out in front of that," Sappington said.

He said a broader product lineup could also help Roku expand into other markets, including Asia. Roku is also reportedly preparing for an IPO later this year.

From the article, "Roku introduces new version of streaming media player" by Benny Evangelista.

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