US Walmart Acquires TV Company... Challenges Samsung Electronics, North America's No.1 TV Brand

by Jang Hyowon

Published 25 Feb.2024 09:33(KST)

[Image source=Yonhap News]

Walmart, the largest retailer in the United States, is reportedly aiming to challenge Samsung Electronics, the number one player in the North American TV market, by acquiring a TV company.

According to industry sources on the 25th, Walmart acquired the American smart TV company VIZIO for $2.3 billion (approximately 3 trillion KRW) on the 20th. VIZIO, which produces smart TVs and sound bars, has been selling its products primarily through Walmart and its affiliates. Its main focus is on affordable, entry-level TVs.

Walmart's acquisition of VIZIO is seen as a strategic move to strengthen its media advertising business, Walmart Connect. VIZIO has secured over 18 million active users. The strategy is interpreted as utilizing smart TVs equipped with VIZIO's TV operating system, SmartCast, as in-home advertising platforms based on customer information.

Walmart already collaborates with streaming device (set-top box) company Roku and sells its own private brand (PB) smart TVs called ONN. The prices of these best-selling TVs are quite affordable, with a 32-inch model priced at $98 (about 130,000 KRW), a 50-inch at $198 (about 260,000 KRW), and a 65-inch at $298 (about 390,000 KRW).

With this acquisition, Walmart appears to be challenging Samsung Electronics' dominant position in the North American TV market, which includes the United States and Canada.

According to market research firm Omdia, Samsung Electronics held a 36.3% revenue market share and a 21.5% unit market share in the North American TV market last year, ranking first in both categories. VIZIO's market share was 10.1% by units, following Samsung Electronics, TCL, Hisense, and LG Electronics.

Samsung Electronics maintained the number one global TV market share for 18 consecutive years until last year and has held the top spot in the North American market for the same period. Unlike VIZIO or ONN, Samsung pursues a sales strategy focused on premium products such as Neo QLED, large-sized, and lifestyle TVs.

Despite stagnant TV demand due to the global economic downturn, demand for large and premium products remains strong, and Samsung is focusing on strengthening its competitiveness in premium products. Additionally, in response to slowing growth in set sales, Samsung is actively expanding its platform business based on its own smart TV operating system, Tizen.