TV manufacturers make more money from advertising than they sell TVs.

Rajesh Vijay Kumar /

Vizio has recently become a public company, allowing us to learn a lot about how it makes its money. As it turns out, the company earns more from advertising, subscriptions, and data than it actually sells TV. And the view is not unique.

Reports of huge revenue generation for smart TV companies are nothing new. The interesting thing about Vizio is that the company makes more profit from selling TVs with ads, subscriptions and data in its smart TV operating system, as stated in its latest earnings report (h / t The Verge). Has gone

The company calls the area its Platform Plus segment, and grossed $ 57.3 million in total profits. The firm’s devices segment, which is responsible for sales of TVs and other hardware, made about 25.6 million. However, the TV sales segment also generates significantly more revenue, but with a much higher cost of doing business.

As far as making money in the Platform Plus area, Vizio sells ad space, adds buttons to the remote, runs ads on streaming channels, deducts from subscriptions, and as part of the InScape program. Tracks and sells viewer data. They can make a lot of money with very little investment compared to actually designing and manufacturing TVs, sound bars and other devices.

Vizio has, in fact, seen a massive increase in the amount generated. In fact, revenue grew 136% over the previous year, so ad space and user data are becoming more profitable for the company.

Of course, Vizio is not the only company that makes a lot of money this way. According to The Verge, Roko, a company known for streaming boxes and sticks, actually earns an average of ڈالر 40 per user per month, which is more than Vizio. And it doesn’t come from the sale of a streaming device.

“We don’t really make money; we certainly don’t make that much money to help with the cost of running our engineering organization and our operations and Roko service,” he told The Verge. “It’s not about hardware. It’s about our advertising and content business.

It’s really interesting to think about how much money you’re making for the company that makes your TV long after it’s paid. Between subscriptions, advertising and your data, the company responsible for making your TV has been able to turn you into a highly profitable long-term investment.

Fortunately, you can turn off many of these features and return only to receive ads via cable and the platforms on which you view content.

Related: How To Prevent Your Smart TV From Spying On You

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