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"Engagement Becomes Critical to Success in the Smart TV Market"
In this final article, we will offer our insight into the future of the smart TV market and the potential impact of the disruption on brands and viewers.
The way that brands profit from televisions is changing. Rather than relying on the TV hardware cost of production plus a mark-up to determine profits, brands are now selling the sets at lower margins and generating recurring revenue from advertising. Smart TV advertising revenue now exceeds the revenue from TV hardware in the North American market and at least two brands are selling their sets at or below the cost of manufacturing. This suggests that gaining a greater share of smart TV advertising revenue, which exceeded $24 billion in 2022, is now the driving force in the market.
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