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
“The $120 per month core package might cause some sticker shock among consumers. Compounding it, the fact that the consumer then also must pay a traditional operator for a robust broadband connection...
Parks breaks the numbers down like this: 63 percent of U.S. broadband households subscribe to an “over-the-top” video service like Netflix. Of those, nearly half subscribe to two or more services....
Before news broke Friday that AT&T has stopped bleeding TV customers, Parks Associates analyst Brett Sappington tried to put a finger on what sort of subscriber numbers for the company’s new streaming...
For a few hours on Sunday, Fox is nixing subscription requirements and opening its Fox Sports Go app to anyone who has cut cable from their lives or has a temperamental TV antenna. After the game ends...
