Vizio’s Ad and Subscriber Data Business Doubles the Profit of Its TV Sales

WebProNews
Vizio’s Ad and Subscriber Data Business Doubles the Profit of Its TV Sales

If there was any doubt the kind of company Vizio is, that was put to rest with its latest earnings, as the company’s ad and data business has become its primary profit generator.

Vizio makes a popular line of smart TVs, and is a household name for many consumers. Unfortunately, not content with merely making and selling a product, Vizio is using its TV platform to collect data and sell ads to its consumers.

According to the company’s latest report, its Platform+ division — responsible for its ad and consumer data business — turned in a gross profit of $57.3 million, an increase of 88%. In contrast, its Devices division — actual hardware sales — only came in at $25.6 million.

“I’m proud of the strength of our Third Quarter results, as the investments we’ve made in our Platform+ business continue to bear fruit,” said William Wang, CEO of VIZIO. “Our dual revenue model is a competitive advantage, and it allows us to leverage our Device business to drive rapidly growing, high-margin revenue within our Platform+ business. Because VIZIO delivers the entire entertainment experience — from the hardware and software, to the content and ads — we are able to deliver an attractive value proposition to consumers, advertisers, and content partners alike. We are here to define the future of the Smart TV business.”

While Wang may be proud of the company’s results, it’s a shame that many companies are no longer interested in merely making and selling a product — and being proud of that. Instead, companies increasingly believe they should be able to monetize every last scrap of data they can collect, mine and collate about their consumers.

Vizio’s latest earnings are proof of that.

Vizio’s Ad and Subscriber Data Business Doubles the Profit of Its TV Sales
Matt Milano

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