Vizio had already transitioned from being a traditional TV manufacturer to an ad- and data-supported business model. With Walmart's acquisition, this model is set to reach new levels.
Walmart, the US retail giant, announced its plans in February 2024. This week, the companies confirmed the deal's closure following regulatory approvals.
- "Today, with the tremendous number of resources from Walmart, we will continue to further accelerate that mission around the best home entertainment experience," said William Wang, CEO and founder of VIZIO.
All eyes on ads
In 2021, Vizio's earnings report revealed that the company earns more revenue from ads and subscriptions than from selling its TV sets.
Walmart aims to expand this business model, turning viewers into the product by collecting viewer data through ACR (Automated Content Recognition), which scans all the content you watch. Vizio TVs also show personalized ads alongside sponsored content.
- "The acquisition of Vizio and its SmartCast Operating System allows Walmart to serve its customers in new ways to enhance their shopping journeys. It will also bring to market new and differentiated ways for advertisers to meaningfully connect with customers at scale and boost product discovery, helping brands achieve greater impact from their advertising investments with Walmart Connect – the company’s retail media business in the U.S.," announced Walmart.
In recent years, companies like Amazon (Fire TV), LG, Roku, Samsung and Google (Google TV) have also embraced ad- and data-driven models for TVs and media players.
