Analysis: As TV Manufacturers’ Revenue Models Evolve, Samsung, LG, and Vizio Shift Their Focus to Advertising

Analysis: As TV Manufacturers’ Revenue Models Evolve, Samsung, LG, and Vizio Shift Their Focus to Advertising

 
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The television manufacturing business is changing. Long a high volume (units sold), high gross revenue, low margin business, the development of connected TVs and free ad-supported TV (FAST) services, is fundamentally changing the TV manufacturer business model, at least for those manufacturers that have an in-house (i.e., first-party) TV operating system (TV OS). These TV OEMs have found a new revenue stream – advertising. And this is fundamentally altering their revenue model. This report examines the changing TV manufacturer business model and how it will impact the semiconductor industry.

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