Walmart's $2.3 Billion Bet on Vizio: A Game-Changer in the CTV/Streaming/Data Marketplace

Much has been written about Walmart39s acquisition of Vizio with the primary focus on ramping up Walmart39s competitive positioning vs Amazon and its growing digital commerce capabilities What I39ve not seen in the commentaries and reporting on Walmart39s acquisition is the connection to their decision to sell Vudu the video streaming service to NBCUniversal39s Fandango in 2020 Vudu which Walmart had acquired in 2010 for 100 million offered a mix of free adsupported streaming content and a digital marketplace for buying and renting movies and TV shows Why it39s worth asking did Walmart sell Vudu and then four years later acquire Vizio And what is the value of Vizio39s relationships in the advertising communityThe likely answer to the first question is the more important one More on the second question follows below Walmart39s strategy is centered on content distribution data collection and commerce Vizio differentiates itself through a combination of affordability user experience and strong partnerships with content providers without the drag of original content on its profitability While Amazon is certainly Walmart39s primary competitor Amazon is investing billions in their content studio In 2022 Amazon invested 166 billion in content marking a 28 rise from 13 billion in 2021 Of this amount approximately 7 billion was dedicated to Amazon Originals live sports programming and licensed thirdparty video contents Most observers believe Amazon39s content investments could continue to grow at a 20 annual rate for several years especially as they enter into longterm sports rightsFor the question on Vizio39s relationships in the ad community according to The Myers Report data from 150 Vizio advertising clients at agencies and brands suggests Vizio has not prioritized commerce offerings into their business They39ve invested in building a sales organization and being a viable yet average competitor in a cluttered competitive set While integrating Walmart39s access to first party data from its customers merged with the firstparty data collected from Vizio TV set owners is a powerful tool Vizio39s value on Madison Avenue is suspectVizio39s success in generating an advertising and data business model has positioned it as a competitor against the likes of LG Ads Redbox Samba TV and Samsung Ads along with content distributors Roku DISH DirecTV and FubuTV Other Vizio competitors include Hulu Peacock Pluto Tubi Philo Rakuten TV Comcast39s Advertising unit Spectrum Reach and contentdata aggregators Cadent Simulmedia Ampersand and XACTV The acquisition of Vizio will inevitably trigger further MampampA activityAccording to The Myers Report data Vizio39s competitive strength is currency flexibility and the company is perceived by the ad community as a viable but not dominant competitor Conversely Walmart Connect the company39s advertising sales unit is second only to Amazon Advertising in the commerce category in establishing business relationships at agencies and brands slightly ahead of Kroger Precision 8451 Growing competitors in the commerceretail media category each of which would benefit from deeper roots in the advertising business include Target Roundel Publicis39 Citrus Ads Walgreens Albertson39s CVS Retail Media Home Depot Lowe39s and retargeting option CriteoThe importance of advertising sales and the collection of firstparty data to Vizio39s revenues cannot be overstated It39s widely understood in the industry that data collection and targeted advertising play a crucial role in the business models of smart TV manufacturers These practices enable companies like Vizio to offer competitive pricing on their hardware while generating additional revenue streams through advertising and partnershipsFor advertising data and media professionals looking to understand the dynamics between hardware providers like Vizio and content providers like Netflix and Amazon Prime Video it39s essential to recognize that while they operate within the same ecosystem their business models and strategies for engaging viewers can be quite different Vizio has established itself as a significant player in the smart TV market by focusing on integrating advanced technologies to enhance user experience and offering value to consumersVizio entered the smart TV market in 2010 with the launch of its VIA Vizio Internet Apps platform which provided users with access to a wide range of streaming content Vizio39s early recognition of the smart TV market39s potential and its commitment to innovation and user experience have been key to its growth By focusing on integrating advanced technologies and prioritizing user experience Vizio has carved out a significant market share in the smart TV industryFor professionals in advertising data and media Vizio39s story underscores the importance of innovation strategic partnerships and customerfocused product development in achieving sustainable growth and competitiveness in the rapidly evolving smart TV market

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Walmart's $2.3 Billion Bet on Vizio: A Game-Changer in the CTV/Streaming/Data Marketplace

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Jack Myers

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Walmart's $2.3 Billion Bet on Vizio: A Game-Changer in the CTV/Streaming/Data Marketplace

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