Buying a TV in 2025? Expect Lower Prices, More Ads, and an OS War.

janrinok

from SoylentNews on 2024-12-20 07:06 (#6T27R)

https://arstechnica.com/gadgets/2024/12/buying-a-tv-in-2025-expect-lower-prices-more-ads-and-an-os-war/

If you're looking to buy a TV in 2025, you may be disappointed by the types of advancements TV brands will be prioritizing in the new year. While there's an audience of enthusiasts interested in developments in tech like OLED, QDEL, and [Micro LED], plus other features like transparency and improved audio, that doesn't appear to be what the industry is focused on.
Today's TV selection has a serious dependency on advertisements and user tracking.
[...] One of the most impactful changes to the TV market next year will be Walmart owning Vizio. For Walmart, the deal, which closed on December 3 for approximately $2.3 billion, is about owning the data collection capabilities of Vizio's SmartCast OS.
[...] In 2025, buying a Vizio TV won't just mean buying a TV from a company that's essentially an ad business. It will mean fueling Walmart's ad business. With Walmart also owning Onn and Amazon owning Fire TVs, that means there's one less TV brand that isn't a cog in a retail giant's ever-expanding ad machine.
[...] Further, Walmart has expressed a goal of becoming one of the 10 biggest ad companies, with the ad business notably having higher margins than groceries. It could use Vizio, via more plentiful and/or intrusive ads, to fuel those goals.
And Walmart's TV market share is set to grow in the new year. Paul Gray, research director of consumer electronics and devices at Omdia, told Ars Technica he expects that "the new combined sales (Vizio plus Walmart's white label) will be bigger than the current market leader Samsung."
[...] 'Walmart has told you by buying Vizio that these large retailers need a connected television advertising platform to tie purchases to," Martin told Bloomberg. "That means Target and other large retailers have that reason to buy Roku to tie Roku's connected television ad units to their sales in their retail stores. And by the way, Roku has much higher margins than any retailer.'"
[...] TV brands have become so dependent on ads that some are selling TVs at a loss to push ads. How did we get to the point where TV brands view their hardware as a way to track and sell to viewers? Part of the reason TV OSes are pushing the limits on ads is that many viewers seem willing to accept them, especially in the name of saving money.
[...]Still, analysts agree that even among more expensive TV brands, there has been a shift toward building out ad businesses and OSes over improving hardware features like audio.
"This is a low-margin business, and even in the premium segment, the revenues from ads and data are significant. Also, the sort of consumer who buys a premium TV is likely to be especially interesting to advertisers," Gray said.
[...] In 2025, TVs will continue focusing innovation around software, which has immediate returns via ad sales compared to new hardware, which can take years to develop and catch on with shoppers. For some, this is creating a strong demand for dumb TVs, but unfortunately, there are no immediate signs of that becoming a trend.
As Horner put it, "This is an advertising/e-commerce-driven market, not a consumer-driven market. TV content is just the bait in the trap."

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