Samsung Shifts TV Strategy to Prioritize Advertising and AI Platform Growth

Samsung Electronics is making a major strategic pivot in its television business. The world’s leading TV maker is now prioritizing platform and advertising revenue alongside hardware sales. This decision was signaled by a key executive promotion within the company.

According to Reuters, the move aims to secure new revenue streams in a highly competitive market. The global TV business faces intense pressure from rivals and thinning hardware margins.

New Leadership Signals a Platform-First Future

Kim Moon-soo was recently promoted to vice president of the Video Display division. He is a key architect of Samsung’s Tizen operating system for TVs. His background is in software and platform development, not traditional hardware engineering.

This leadership change highlights a fundamental shift. Samsung sees future growth coming from services and ads. The company will continue to advance screen technology, but the software experience is now equally important.

This strategy leverages Samsung’s massive installed base of smart TVs. Millions of households worldwide use a Samsung television. This provides a vast audience for targeted advertising and content services.

Capitalizing on the Booming Ad-Supported TV Market

Samsung’s free, ad-supported streaming service, Samsung TV Plus, is central to this plan. The service offers hundreds of live channels and on-demand content. It is pre-installed on all new Samsung smart TVs.

The global market for ad-supported streaming is projected to hit $12 billion by 2027. Samsung is positioning itself to capture a significant share of this revenue. Ad sales create a recurring income stream that complements one-time TV purchases.

This approach transforms the television from a one-time purchase into a continuous revenue generator. It also helps Samsung compete with other low-cost TV manufacturers. The company can offer premium hardware while subsidizing costs through platform earnings.

Samsung’s renewed focus on its advertising business marks a new chapter for the consumer electronics giant. The living room television is becoming a powerful digital billboard. This strategic shift will define the next generation of home entertainment.

Info at your fingertips

What is Samsung TV Plus?

Samsung TV Plus is a free streaming service built into Samsung smart TVs. It offers live news, sports, and entertainment channels. The service is supported by advertisements.

How does Samsung plan to make money from ads?

Samsung sells advertising space within its Samsung TV Plus service. Brands pay to reach the large audience of Samsung TV owners. This creates a steady revenue stream beyond TV sales.

Will this change the price of Samsung TVs?

Industry analysts suggest this strategy could help keep TV prices competitive. Revenue from advertising may help subsidize the cost of advanced hardware for consumers.

What does this mean for the user experience?

Users can expect to see more integrated content and AI features. The interface may prioritize Samsung’s own services and partnered content to enhance engagement and ad visibility.

Who is Kim Moon-soo?

Kim Moon-soo is the new VP of Samsung’s Video Display division. He was deeply involved in developing the Tizen OS for TVs. His promotion signals a greater focus on software and platform growth.