Sonos abandons plans for video streaming device

Sonos abandons plans for video streaming device

  • 16.03.2025 15:26
  • broadbandtvnews.com
  • Keywords: High Risk, Market Saturation

Sonos has abandoned plans for its high-end video streaming device, Pinewood, due to struggles following an app-related product failure. The project team will now focus on other areas as the company works to recover from setbacks.

Apple ProductsTTDsentiment_satisfied

Estimated market influence

Sonos

Negativesentiment_dissatisfied
Analyst rating: N/A

Struggling to recover from app issues; abandoning video streaming device project which was in beta testing.

The Trade Desk

The Trade Desk

Positivesentiment_satisfied
Analyst rating: Buy

Providing operating system for Sonos' Pinewood product, but since the project is halted, their role might be affected negatively.

Context

Business Insights and Market Implications

Market Context

  • Video streaming hardware market is highly competitive, dominated by Apple, Amazon, Roku, and TV manufacturers integrating the technology into their products.

Business Impact

  • Sonos has halted development of its high-end video streaming device codenamed Pinewood, which was in beta testing.
  • The decision came during a leadership call last week, affecting the team assigned to the project.
  • The company is still recovering from an ill-fated app revamp that rendered some product lines inoperable, leading to loss of customer trust.

Competitive Landscape

  • Sonos faces strong competition from established tech giants with significant market share and integrated solutions.
  • Pinewood would have used an operating system run by The Trade Desk, but the project was deemed non-viable due to market saturation and competitive pressures.

Strategic Considerations

  • The company is shifting focus back to its core audio products, reallocating resources to other areas of the business.
  • This decision reflects a strategic pivot towards strengthening its position in the audio market rather than diversifying into video streaming.

Long-Term Effects

  • The abandonment of Pinewood may impact Sonos' ability to innovate and compete in adjacent markets, potentially affecting investor sentiment.
  • The move could signal a more conservative approach to product development, focusing on proven revenue streams over high-risk ventures.