The Drama Unfolding on TV
In this blog, the first in a series on the TV industry, we’ll describe the changes in more detail. Over the coming months, we’ll also consider what the developments mean for consumers, for well-established manufacturers and retailers, and for new entrants in the market.
For decades, manufacturers and retailers have made money from the sale of TVs on a cost of manufacturing basis plus markups for profit margins – the same as other consumer electronics. But now the market is changing. Many of us are streaming programs from smart devices rather than tuning in to watch traditional TV. The new business models that are emerging as a result of the shift means manufacturers and retailers aren’t only relying on the mark-up on television sets to make a profit anymore. They’re also turning their attention to the potential of smart TV platform profits from selling advertising and viewing data.
