Walmart is selling a new $89 Onn-branded TV powered by Vizio's operating system, a move designed to accelerate its advertising business by connecting what you watch with what you buy. The release is the first major product initiative following the retailer's $2.3 billion acquisition of Vizio, marking a strategic pivot to compete directly with Amazon and Roku in the connected TV space.
An ad machine in disguise: Debuting as a Black Friday doorbuster, the TV’s aggressive pricing is meant to get the hardware into homes, but the real goal is to build an advertising business that controls everything from the screen to the sale, a direct challenge to Amazon and Roku. By owning the hardware and software, Walmart can leverage its massive trove of shopper data to power its Walmart Connect advertising arm, serving targeted ads and tracking their real-world purchasing impact.'
A hit on Roku: The move is a direct blow to Roku, whose software powered previous Onn TV models. While other Roku devices will remain on Walmart's shelves, the switch for its popular in-house brand severs a key partnership and attacks Roku's leading 34% market share in the TV operating system space.
For now, customers get an inexpensive smart TV with a full suite of apps. But the long-term play is to build a pipeline for 'shoppable media,' effectively turning the television into a digital cash register in every living room. As Walmart builds its walled garden, Roku is making other alliances, partnering with Amazon's ad platform to create a combined reach of 80 million households. At the same time, Roku is also deepening its own shoppable ad capabilities through a deal with Instacart.
