Very quietly, every TV manufacturer's CEO work up one morning and realized they were no longer in the hardware business. They are the tip of the sword in the distribution, monetization, and measurement business of all TV. And the kicker is, it does not matter how the program got to the glass...over the air, cable, OTT, or internet. They are in the driver's seat.
They will make 10x (or more) profit on the lifetime of each TV than they do on the sale of the actual device.
I do think there I left an element of consumers choosing an OS based on content internationally—no platform has aligned their international roll-out with their streaming platform agreements. That will be the biggest war. I think I am interested to see if Amazon can eat into Roku share with their cheap TVs this holiday season. I am skeptical however since Amazon almost had no choice but to launch their own TV. I wonder if consumers would pivot to purchasing TVs from Amazon. Sky is the brand name in the UK and that’s what consumers know, I don’t think they would associate Comcast with anything let alone a legacy frustrating cable provider or brand in general. At the end of the day this all comes down to unique devices and streaming hours. There is a reach ceiling at the brand level based on AVOD supply. Whether any OS has a strong hold probably won’t drastically change from the comp in market today. So share might remain in tact but they need those new users to be able to maximize yield and replace the linear ad dollars. There is not enough supply to do that measured on a 1:1 basis right now. So what OS can launch their FAST platform and also produce killer integrations and have content worthy of premium CPMs. Can the agency side also make the grand pivot to dynamic, full funnel investments similar to their spends on social? Does the TV ad product equivalent to “google ad words” get invented via glass delivery?
Very quietly, every TV manufacturer's CEO work up one morning and realized they were no longer in the hardware business. They are the tip of the sword in the distribution, monetization, and measurement business of all TV. And the kicker is, it does not matter how the program got to the glass...over the air, cable, OTT, or internet. They are in the driver's seat.
They will make 10x (or more) profit on the lifetime of each TV than they do on the sale of the actual device.
Where’s open source in all of this?
I do think there I left an element of consumers choosing an OS based on content internationally—no platform has aligned their international roll-out with their streaming platform agreements. That will be the biggest war. I think I am interested to see if Amazon can eat into Roku share with their cheap TVs this holiday season. I am skeptical however since Amazon almost had no choice but to launch their own TV. I wonder if consumers would pivot to purchasing TVs from Amazon. Sky is the brand name in the UK and that’s what consumers know, I don’t think they would associate Comcast with anything let alone a legacy frustrating cable provider or brand in general. At the end of the day this all comes down to unique devices and streaming hours. There is a reach ceiling at the brand level based on AVOD supply. Whether any OS has a strong hold probably won’t drastically change from the comp in market today. So share might remain in tact but they need those new users to be able to maximize yield and replace the linear ad dollars. There is not enough supply to do that measured on a 1:1 basis right now. So what OS can launch their FAST platform and also produce killer integrations and have content worthy of premium CPMs. Can the agency side also make the grand pivot to dynamic, full funnel investments similar to their spends on social? Does the TV ad product equivalent to “google ad words” get invented via glass delivery?