Walmart’s bid for Vizio would make it a different kind of company
Walmart’s bid for Vizio would make it a different kind of company
One big box store is aiming to become even bigger: Walmart, which is looking to buy TV manufacturer Vizio, according to the Wall Street Journal. Walmart already makes its own line of TVs, called Onn. So why would Vizio want to sell a competing brand?
Walmart isn’t really in this deal for Vizio’s TVs. But Smartcast, Vizio’s streaming software?
“That’s increasingly where the money is,” said Jennifer Kent, vice president of research at Parks Associates.
She said these days, a TV’s worth is tied to its streaming platform. Walmart’s private label brand Onn uses Roku, which Walmart does not own. Kent says acquiring Vizio’s Smartcast may help the big box retailer grow into another kind of company.
“The tech giants aren’t just making products. They’re very interested in having a relationship with you across many aspects of your life,” she said.
In other words, “Walmart has Amazon envy,” said Tim Hanlon, CEO of The Vertere Group.
He said moving into media could help expand Walmart’s brand, along with its access to proprietary data that’s pulled from commercials that lead to purchases.
“They wanna be able to tell marketers and advertisers that a dollar invested in a particular form of advertising is going to net out into three or four times that amount in a sale,” he said. “That’s a very alluring proposition to a marketer who is under increasing pressure to prove that their marketing dollars are actually working.”
Hanlon said in a few years, streaming will hit a turning point and roughly 10 software companies will become a handful. Acquiring Vizio would give Walmart a quick “in” before consolidation.
Jennifer Kent at Parks Associates says she could see Walmart strengthening its position by creating its own movies and shows. “Walmart Originals,” she said.
Coming … maybe someday … to a TV near you.
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