Walmart is buying the smart TV maker Vizio for $2.3 billion as it attempts to expand its rapidly growing advertising business to compete with Amazon.
If completed, the deal would give Walmart access to Vizio's SmartCast operating system, allowing the retail behemoth to offer its suppliers the ability to display ads on streaming devices.
Walmart has been ramping up its media and ad business with Walmart Connect, giving advertisers access to Walmart's massive customer base. In its earnings release on Tuesday, Walmart said its global advertising business grew approximately 28% to $3.4 billion last year.
The moves come as Amazon announced last month it would start charging its Prime members $2.99 per month to keep their movies and TV shows ad-free, on top of the fee it charges for Prime: $14.99 per monh or $139 per year.
What does Walmart have to gain from a TV maker?
Vizio's SmartCast system has 18 million active accounts and has grown by 400% since 2018. The companies say that Vizio's platform has more than 500 direct advertisers and that ads now account for the majority of the company's gross profit.
Makers of streaming hardware like Roku and Vizio have increasingly shifted their focus to ad revenue in recent years. Vizio launched its Vizio Ads business unit in 2019, claiming that it was "one of the few connected TV companies with the device penetration, consumer opt-in and infrastructure to deliver meaningful scale."
Walmart recognized the Vizio's expanding consumer reach and jumped at the chance to supplement its Walmart Connect business.
"We believe the combination of these two businesses would be impactful as we redefine the intersection of retail and entertainment," said Seth Dallaire, executive vice president and chief revenue officer for Walmart U.S.
Who else is stepping up screen advertising?
Other major streamers –- such as Netflix and Disney –- have embraced the dual model that allows them to earn revenue from ads and also offer subscribers the option to opt out with a higher fee.
However, in the constantly evolving streaming sector, it remains to be seen whether consumers are willing to pay more to see fewer ads when they are already paying subscription fees, often for multiple services. A big reason that so many viewers "cut the cord" and quit cable TV was frustration over their ever-increasing bills.
Review: Director John Crowley’s “We Live In Time”
It's not hard to spend a few hours watching Florence Pugh and Andrew Garfield fall and be in love. In "We Live In Time," filmmaker John Crowley puts the audience up close and personal with this photogenic British couple through the highs and lows of a relationships in their 30s.
Everyone starts to think about the idea of time, and not having enough of it to do everything they want, at some point. But it seems to hit a lot of us very acutely in that tricky, lovely third decade. There's that cruel biological clock, of course, but also careers and homes and families getting older. Throw a cancer diagnosis in there and that timer gets ever more aggressive.
While we, and Tobias (Garfield) and Almut (Pugh), do indeed live in time, as we're constantly reminded in big and small ways — clocks and stopwatches are ever-present, literally and metaphorically — the movie hovers above it. The storytelling jumps back and forth through time like a scattershot memory as we piece together these lives that intersect in an elaborate, mystical and darkly comedic way: Almut runs into Tobias with her car. Their first chat is in a hospital hallway, with those glaring fluorescent lights and him bruised and cut all over. But he's so struck by this beautiful woman in front of him, he barely seems to care.
I suppose this could be considered a Lubitschian "meet-cute" even if it knowingly pushes the boundaries of our understanding of that romance trope. Before the hit, Tobias was in a hotel, attempting to sign divorce papers and his pens were out of ink and pencils kept breaking. In a fit of near-mania he leaves, wearing only his bathrobe, to go to a corner store and buy more. Walking back, he drops something in the street and bang: A new relationship is born. It's the... Read More