Tech market analysts Omdia reveal their latest findings that show a significant shift in the connected TV (CTV) market with hardware manufacturers increasingly capitalising on platform revenues rather than hardware sales. Companies such as Roku and Vizio are even accepting losses on hardware to focus on more lucrative revenue streams from their platforms.
Roku is at the forefront of the CTV advertising space, with projections indicating it will generate $5 billion in revenue by 2029. This forecast includes income from Free Ad-Supported Streaming TV (FAST), CTV user interface ads, and third-party inventory shares.
Roku’s dominance in CTV advertising is expected to drive the industry, which is forecasted to double by 2029 compared to 2024 levels. Currently, Roku is the leading CTV player in the US, the world’s largest advertising market, with 20% of US TV sets powered by its platform, enhancing its advertising success and setting a benchmark for competitors.
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.
Walmart’s acquisition of Vizio 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 U.S., 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.
“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,” said Maria Rua Aguete, Senior Research Director, in Omdia’s Media and Entertainment practice. “As the CTV advertising market is set to double, both Roku and Samsung are strategically positioned to leverage this explosive growth.”
Watch Maria Rua Aguete’s sessions at IBC2024 in Amsterdam which delve into the key drivers of growth in the media and entertainment market, the rise of streaming video, evolving advertising business models, and the impact of AI on the industry.
You are not signed in
Only registered users can comment on this article.
Oscars to livestream exclusively on YouTube in 2029
YouTube has secured exclusive global rights to the Oscars – including red carpet coverage, behind-the-scenes content, Governors Ball access, and more – from 2029 to 2033.
BBC Charter Review seeking input on generating more commercial revenue
Culture Secretary Lisa Nandy has launched a review of the BBC’s Royal Charter, with priorities aimed at bolstering trust in the broadcaster and increasing financial sustainability.
Netflix leadership lays out case for Warner Bros Discovery deal
Netflix Co-CEOs Greg Peters and Ted Sarandos have stressed their belief that the streamer’s planned $83bn acquisition of Warner Bros Discovery will go ahead, despite a hostile bid from Paramount Skydance.
UK facilities Halo Post and Evolutions placed into administration
Just months after being acquired by leading UK post-production company Envy, post houses Halo Post Production and Evolutions have been placed into administration.
UK government names Creative Industries Council members
The UK government has named the new members of its Creative Industries Council (CIC), its strategic forum for collaboration with industry leaders.
