Walmart Is Set To Acquire VIZIO for $2.3 Billion
The AV market may never be the same as Walmart is set to acquire VIZIO for $2.3 Billion. This will bring one of the largest retailers in North America together with one of newer members of the Smart TV market. But why now and what will this mean for VIZIO in your home theater? Let’s discuss.
Why Now?
One of the predominant reasons is advertising. Our smart TV’s and devices give advertisers tons of information about what we watch, what commercials we watch vs. skip and what interests us. This wealth of data will allow Walmart to use VIZIO sets, and their SmartCast system to target ads to us.
Additionally, Walmart is aimed at budget-minded consumers, as is VIZIO. While VIZIO has become more of a disrupter in the smart TV segment, they only hold about 8% of the current market. A partnership with Walmart could see sales surge in the North American markets due to additional marketing and savings in store.
Predictions
While Walmart is one of the largest retailers in North America, (they have a presence in 24 countries with over 10 600 retail locations) I don’t expect to see VIZIO become a Walmart exclusive brand. With only 8% of the smart TV share, I don’t think that closing off sales in other retail outlets would be a smart move.
I do see this an avenue for Walmart to develop content exclusively for VIZIO. Much like Amazon offers free movie and music streaming with its Prime memberships, Walmart could look to do the same with their Walmart + membership. Currently Walmart + members get free Paramount + memberships. Maybe we will see more exclusive partnerships with VIZIO in the future.
I also expect to see more advertising on the VIZIO. I frequent forums and one of the complaints I often see are how some of the streaming boxes are now serving up advertising, mostly for streaming services, in a banner. We have all become accustomed to seeing adverts in our web browsers, but I am not sure I would want that on my Smart TV.
Lastly, with Walmart money (about $400 Billion) we might see some very interesting R&D coming out of VIZIO. VIZIO has come a long way from its humble beginnings and is beginning to put out some quality panels that rival the traditional Flagship brands like LG, Sony and Samsung.
Our Take
I always take a wait and see type of attitude towards these types of acquisitions. Obviously, Walmart see’s potential in this purchase, and is setting their eyes towards a more digital future. Whether that is through expanded advertising data and revenue, or an a foray into new streaming content, we will have to wait and see.
If this gets me bigger, brighter and more affordable TVs, sign me up!
