Connected TV hardware manufacturers are increasingly capitalizing on platform revenues rather than hardware sales, according to analyst firm Omdia. “Companies such as Roku and Vizio are even accepting losses on hardware to focus on more lucrative revenue streams from their platforms,” the company reports.
Omdia’s latest figures show that Roku leads the CTV advertising space and will also lead its expansion, with projections indicating it will generate $5.1 billion in revenue by 2029 (up from $2.8 billion in 2024).This forecast includes income from FAST, connected TV user interface ads, and third-party inventory shares. “Roku is the leading CTV player in the U.S., the world’s largest advertising market, with 20% of U.S. TV sets powered by its platform, enhancing its advertising success and setting a benchmark for competitors,” an analyst note states.
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,” Omdia adds. “Walmart has 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, Omdia forecasts.
“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,” explains Maria Rua Aguete, Senior Research Director at Omdia’s Media and Entertainment practice (pictured top). “As the CTV advertising market is set to double, both Roku and Samsung are strategically positioned to leverage this explosive growth.”
