Smart TV companies and streaming the platforms track our viewing habits, turning them into gold for sellers and politicians who want us to stream, buy, or vote in a specific way. The market is ballooning in the age of quarantine binge-watching. Now, a public surprise, strangely bad spit between the two key players, the YouTube and year, offers an interesting look at the billion-dollar market that has been built up in our view.
Early in May, streaming provider Roku called YouTube the parent Google a “Undetected monopolist,” after which the contract negotiations between the two broke down. The contract for including the YouTube TV app on Roku devices has ended. The two companies have agreed terms for the change, but Roku said Google has made a number of counter-competition requests.
on an email of users, Roku said Google was asked to manipulate consumer search results in favor of YouTube videos, that Google was asked to access sensitive user data, and that Roku was asked to use more expensive parts of its devices, which speed up the cost.
Google countered by calling the accusations “There is no basis and lies.” When Roku removed YouTube TV from devices, Google demonstrated a solution by making YouTube TV accessible through the main YouTube app. YouTube TV offers live television and sports events, self -marketing as well an attractive option to those seeking to cut the cord of a traditional cable box.
The conflict reveals what is more valuable about connected TVs: the data they get and the ad dollars they generate. In 2020, connected to TV advertising topped $ 9 billion, according to eMarketer.
rude three quarters in US homes there is a TV connected to the internet, either a smart TV or one connected to a plug-in device such as Roku or Amazon Fire. This means that millions of people across the U.S. have agreed to some form of online tracking of their viewing behavior. This data is very valuable that the whole smart TV ecosystem revolves around its collection.
Roku has 50 million users and reportedly recorded 79 percent revenue growth during the pandemic, mostly reinforced by advertising. Meanwhile, secondly as many users watch YouTube on TV (be it native “brain” or have a plug-in tool like Roku or Amazon Fire) rather than a computer.
It’s well known that YouTube keeps tabs on what logged-in users are watching, collects data and uses that to push multiple recommendations and fine-tune ads. That’s not the same as so -called hardware providers “after buying money, ”The many ways in which companies can make money are what you are looking at. Roku continued tabs what you look at, so do TV makers such as Vizio, LG, and Samsung.
Like social media companies, multiple users means a lot of data, meaning a lot of ad revenue. Smart TVs and plug-in devices use a method called ACR (Automatic content recognition) to keep track of everything you watch. From there, they confirm a few things about you.
Does a user watch Nickelodeon regularly? Maybe they have children. Do they watch the local news in the morning, but not in the afternoon? Maybe they’re an early riser who’s still traveling to work. All of this information is useful to advertisers, who want to put their message in front of the right person at the right time.
Roku’s recent moves show that it plans to become more than just a streaming provider. In 2019, it will obtained DataXu, an analytics company linking specialist an individual user of all the devices they use for streaming. Since then, Roku has also sold the company and began to highlight its own ability to tailor targeted ads to specific audiences (singles who love hockey, young parents who support environmental causes, etc.) as they turn their TV into their tablets and so on.