Sonos faced significant challenges in 2024, with their problematic app rollout resulting in an estimated $100 million revenue loss. Former CEO Patrick Spence apologized for the mishap before stepping down. Now, the company is pivoting towards developing a video streaming device to compete with major players like Apple TV, Google Chromecast, Roku, and Amazon Firestick.

The app issues severely impacted the launch of their AirPods Max competitor, the Sonos Ace headphones, and delayed other products including the Sonos Arc soundbar. The company prioritized fixing the app, though it still lacks feature parity with its predecessor.

The upcoming video streaming device, codenamed Pinewood, is expected to cost between $200-$400, significantly higher than initially rumored. According to The Verge, the device is a flat black square, slightly thicker than a deck of cards, and runs on Android.

Key features of the new streamer include:

• Universal search functionality
• Integrated Sonos Voice control
• Multiple HDMI ports with passthrough technology
• Support for external devices (gaming consoles, Blu-ray players)
• Potential surround sound configuration with existing Sonos speakers

New interim CEO Tom Conrad, former CTO of Pandora, will address investors about the company's direction in the coming week. The success of this video streaming device could be crucial for Sonos's recovery from their recent setbacks.

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