New research from Omdia is forecasting a significant shift in the connected TV market as hardware manufacturers look to platform revenues rather than hardware sales.
For Roku and Vizio this even goes so far as to accept losses on hardware in order to bring forward the more lucrative revenue streams from their platforms,
Roku has emerged as the leader in the connected TV (CTV) advertising space, with projections indicating it will generate $5 billion in revenue by 2029. The forecast includes income from Free Ad-Supported Streaming TV (FAST), CTV user interface ads, and third-party inventory shares.
Roku is the leading CTV player in the United States and with 20% of US TV sets powered by its platform, enhancing its advertising success and setting a benchmark for competitors.
“Roku’s success is driven by its position as the largest platform in the top advertising market, while Samsung maintains strong competition through its broad international reach,” Maria Rua Aguete, Senior Research Director, in Omdia’s Media and Entertainment practice told a session at IBC 2024. “As the CTV advertising market is set to double, both Roku and Samsung are strategically positioned to leverage this explosive growth.”
Samsung, the second-largest player in the CTV market, is also anticipated to see substantial growth, with revenues projected to reach $3 billion by 2029 – more than doubling from $1.35 billion in 2024. Samsung’s extensive global presence enables it to maintain strong competition with Roku, despite Roku’s dominance in the largest advertising market.
The acquisition of Vizio by the supermarket giant Walmart highlights its strategic move to tap into the expanding CTV revenue streams, with plans to explore new avenues such as retail media and shoppable TV in the United States, indicating shifts in the competitive landscape.
The total CTV advertising market is set to grow from $6.65 billion in 2024 to $13.5 billion by 2029, with Roku expected to lead this expansion, projecting revenues of $2.8 billion in 2024 and rising to $5.1 billion by 2029.
