As Elizabeth Parks, President and CMO of Parks Associates, details on a LinkedIn post mulling over the recent buyout of Vizio by Walmart:
“For TV manufacturers and smart TV platform owners alike, the smart TV business lifecycle is no longer just about per-unit revenues at time of retail sale and shares of subscription and transactional video revenues. The value of leveraging an installed base for targeted advertising and measurement data provides an additional recurring revenue stream that grows in value as the platform’s installed base grows.”
“The rumored [now confirmed] sale to Walmart would place it more in competition with Amazon, providing valuable data that can be leveraged for higher ad viewership and synergy for retail purchases that will together boost revenue,” notes Parks later in the post.
From the article, "Is the Future of Smart TVs Ad-Supported?" by Nick Boever
Brett Sappington is a senior director of research at Parks Associates. He leads the firm’s services research team, which publishes industry insights on access and entertainment services, digital media...
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