Vizio Explained

Vizio Holding Corp.
Logo Upright:0.8
Former Name:V Inc. (2002–2004)
Type:Public (sale to Walmart pending)
Industry:Electronics
Founded:, in Costa Mesa, California, U.S.
Founders:William Wang
Hq Location City:Irvine, California
Hq Location Country:U.S.
Products:OLED TV, 4K UHD TVs, LCD TVs, LED TVs, soundbars, home theater in a box, QLED TV, Platform+
Revenue Year:2020[1]
Area Served:North America
Footnotes:[2]

Vizio Holding Corp. is an American publicly traded company that designs and sells televisions, sound bars, viewer data, and advertising. The company was founded in 2002 and is based in Irvine, California.[3] In February 2024, it entered into an agreement to be acquired by Walmart, so Walmart can expand advertising sales in video content that streams for free on Vizio devices.[4]

History

The company was founded in 2002 as V Inc. by entrepreneur William Wang and two founding employees.[5] [6] By 2004, Wang changed the company name to Vizio.[7] [8]

In 2006, the company's revenue was estimated at $700 million, and in 2007 it was estimated to have exceeded $2 billion.[9] Vizio is known for selling its HDTVs at lower prices than its competitors.

On October 19, 2010, Vizio signed a 4-year contract to sponsor U.S. college football's annual Rose Bowl game in Pasadena, California, beginning with the 2011 Rose Bowl and ending with the 2014 Vizio BCS National Championship Game.[10] When the Rose Bowl contract ended, Vizio signed a contract to sponsor the Fiesta Bowl making the official name the Vizio Fiesta Bowl.[11]

In late 2014, Vizio acquired Advanced Media Research Group, Inc., the parent of entertainment website BuddyTV.[12]

On July 24, 2015, Vizio filed with U.S. regulators to raise up to $172.5 million in an initial public offering of Class A common stock;[13] [14] however, the IPO was never completed.[15] [16]

In August 2015, Vizio acquired Cognitive Media Networks, Inc, a provider of automatic content recognition (ACR).[17] Cognitive Media Networks was subsequently renamed Inscape Data. Inscape functioned as an independent entity until the end of 2020, when it was combined with Vizio Ads and SmartCast; the three divisions combining to operate as a single unit.[18]

In November 2015, the U.S. Federal Trade Commission (FTC) and Office of the New Jersey Attorney General brought charges against Vizio, alleging it collected non-personal information on its customers and sold it to advertisers.[19] [20] In February 2017, Vizio agreed to pay $2.2 million to settle the charges.[21] [22] [23] [24] Additionally, the settlement required Vizio to delete the data it had captured and update its data collection practices. After the settlement, the company only collected data from TV units that opted in through disclosures.[25]

On July 26, 2016, Chinese electronics company LeEco announced that it would acquire Vizio for US$2 billion;[26] however, the acquisition was canceled in April 2017 after the Chinese government blocked the merger amid a larger government crackdown on major foreign acquisition by domestic Chinese firms.[27] [28] [29] In July 2017 Vizio sued LeEco claiming that it failed to pay $60 million of a $100 million breakup fee. The suit was later settled by the companies in November 2018 on undisclosed terms.[30]

From the year 2016 onwards, Vizio launched its SmartCast across all television sets including apps such as Netflix, YouTube and Disney+.[31]

In 2018, Vizio launched a free streaming service called WatchFree, powered by Pluto TV, on its SmartCast platform.[32] [33]

As of 2021, Vizio had 527 employees across the U.S. in states including California,[34] South Dakota,[35] Washington,[36] Arkansas, Minnesota, Texas,[37] and New York.[38] The company reported total revenue of $2.04 billion and net income of $102.5 million by the end of 2020.[39]

Vizio was the second largest seller of flat-panel televisions in the US.[40] the company has sold over 11 million sound bars and 80 million TVs,[41] and has more than 12 million active SmartCast accounts.[42]

In March 2021, Vizio filed for an IPO.[43] [44] In the same month, Vizio was listed on the New York Stock Exchange[45] [46] under the symbol VZIO.

In October 2021, Vizio was sued by the Software Freedom Conservancy for GPL violations.[47] On October 19, 2021, Software Freedom Conservancy (SFC) filed a lawsuit against Vizio Inc. because the company failed to fulfill the requirements of the GNU General Public License by failing to provide the source code. SFC stated in the lawsuit that Vizio was "not providing and technical information that copyleft licenses require, Vizio was not even informing its customers about copylefted software and the rights it gives them as consumers."[48] [49] On November 29, 2021, Vizio filed a request to remove the case into US federal court.[50] [51] On May 13, 2022, federal district court judge Josephine Staton sided with SFC and granted a motion to send the lawsuit back to Superior Court, to answer breach-of-contract claims.[52]

In February 2024, The Wall Street Journal reported that major retailer Walmart had launched talks to acquire Vizio for $2.3 billion with the view to create a more potent rival to Amazon’s booming ad business.[53] Both Walmart and Sam's Club had long sold Vizio products. Announced that month, the acquisition would make the company part of Walmart's US segment in an effort to support the retailer's high-margin advertising business, Walmart Connect. A columnist for The Wall Street Journal suggested the move would put great pressure on a competitor in the space, Roku, citing sector analyst opinion.[54] [55] [56]

Products

Vizio produces television sets and soundbars and has previously produced tablets, mobile phones and computers. Vizio manufactures its products in Mexico, China, and Vietnam under agreements with ODM assemblers in those countries.[57]

Television sets

Television sets are Vizio's primary product category, and in 2007 the company became the largest LCD TV seller (by volume) in North America.[58] In February 2009, Vizio announced they would stop production of plasma televisions and would focus on the LED-backlit LCD displays .[59]

In March 2016, Vizio announced the release of SmartCast TVs that allowed users to control the screen from a tablet or mobile app.[60] [61] The following year, Vizio relaunched its smart TV platform to include apps directly on the screen, including Amazon Prime Video and Netflix.[62] [63] In 2018, Vizio released its first Quantum Dot LED 4K TV.[64] Vizio has added functionality for Google Assistant and Alexa-enabled devices, Apple Airplay2, Apple HomeKit[65] and gaming features for its SmartCast TVs.

Sound bars

Vizio's sound bar products are named by series, including the V-Series, M-Series, and Elevate. Series names pair with suggested TV products.[66]

In 2013, Vizio released the Home Theater Sound Bar, a surround sound home audio system."[67] [68] In 2018, the company released its first Dolby Atmos soundbars.[69] In 2020, Vizio released the Elevate soundbar, the first Atmos soundbar with rotating speakers. At CES 2020, Vizio earned the CES innovation award product designation for the Elevate sound bar.[70]

Vizio's audio collection includes entry and mid-level sound bars that include surround sound, as well as premium versions.[71]

SmartCast

SmartCast is the operating system/platform that Vizio uses in all their smart TVs.[72] It uses both Chromecast and Apple AirPlay.[73] [74] In June 2021 Vizio updated SmartCast with a Vizio voice feature. The platform allows access to a limited number of streaming apps like Apple TV+, Disney+, Hulu, Netflix and Prime Video.[75] [76]

Past products

Vizio has previously produced other products in addition to televisions and soundbars. In 2011, Vizio introduced the Via Tablet and Via Phone, its first tablet and mobile phone products.[77] The following year, Vizio began producing laptops, creating a lineup of PC computers that came in ultrabook and notebook models.[78] Also in 2012, Vizio introduced several HD Android smartphones in Asian markets, including China,[79] and began selling the "Vizio Co-Star," a Google TV digital media player.[80] In 2013, the company released the Vizio Tablet PC, its first Windows 8 tablet.[81] The company stopped producing tablets and computers in 2014.[82]

Notes and References

  1. Web site: Vizio Files for IPO: TV Maker Had 12.2 Million Streaming Accounts at End of 2020 . Spangler . Todd . Variety . March 2021 . March 22, 2021 . April 11, 2021 . https://web.archive.org/web/20210411022420/https://variety.com/2021/digital/news/vizio-files-for-ipo-1234918829/ . live .
  2. Web site: Vizio on the Forbes America's Largest Private Companies List . Forbes . September 17, 2017 . September 9, 2017 . https://web.archive.org/web/20170909041515/https://www.forbes.com/companies/vizio/ . live .
  3. Lawton, Christopher, Iwatani Kane, Yukari and Dean, Jason."U.S. Upstart Takes On TV Giants in Price War ", The Wall Street Journal, April 15, 2008. Retrieved on April 15, 2008.
  4. Web site: 2024-02-20 . Walmart Acquires Smart TV Firm Vizio For $2.3B, Altering Streaming Ad Landscape . 2024-02-20 . Yahoo Sports . en-GB.
  5. Web site: How Vizio conquered TV. August 20, 2020. Fortune . January 22, 2021. https://web.archive.org/web/20210122142958/https://fortune.com/2012/07/25/how-vizio-conquered-tv/. live.
  6. Web site: AP. Chris . Carlson . September 7, 2007. Upstart Vizio is top flat-screen TV seller for now. August 20, 2020. MSNBC.com . October 19, 2021. https://web.archive.org/web/20211019175215/https://www.nbcnews.com/id/wbna20644343. live.
  7. Web site: JournalNow Staff. Vizio boss had vision: affordable flat panels. August 20, 2020. Winston-Salem Journal . April 20, 2008 . February 8, 2021. https://web.archive.org/web/20210208204449/https://journalnow.com/business/vizio-boss-had-vision-affordable-flat-panels/article_fcab7127-09c3-59fb-adbb-f1b576d3ddd5.html. live.
  8. News: Beijing. Christopher Lawton in San Francisco, Yukari Iwatani Kane in Tokyo and Jason Dean in. April 16, 2008. U.S. Upstart Takes On TV Giants in Price War . Wall Street Journal. August 20, 2020. 0099-9660. December 5, 2020. https://web.archive.org/web/20201205124649/https://www.wsj.com/articles/SB120820684382013977. live.
  9. Web site: Pham . Alex . October 13, 2007 . Focusing on the big picture gives Vizio edge in TV market . live . https://web.archive.org/web/20210610013233/https://www.latimes.com/archives/la-xpm-2007-oct-13-fi-vizio13-story.html . June 10, 2021 . August 20, 2020 . Los Angeles Times.
  10. News: Vizio Nabs Four-Year Rose Bowl Presenting Sponsorship . Orange County Business Journal . October 19, 2010 . Chris Casacchia . October 20, 2010 . August 17, 2017 . https://web.archive.org/web/20170817131440/http://www.ocbj.com/news/2010/oct/19/vizio-inc-nabs-four-year-rose-bowl-presenting-spon/ . live .
  11. Web site: Vizio signs up for Fiesta Bowl sponsorship. August 20, 2020. www.bizjournals.com. April 11, 2021. https://web.archive.org/web/20210411030146/http://www.bizjournals.com/phoenix/blog/business/2014/10/vizio-signs-up-for-fiesta-bowl-sponsorship.html. live.
  12. Web site: Roettgers. Janko. February 24, 2016. Google to Add Casting to TV Sets, Starting With Vizio (Exclusive). August 20, 2020. Variety . August 21, 2020. https://web.archive.org/web/20200821063933/https://variety.com/2016/digital/news/vizio-tablet-tv-google-cast-1201713844/. live.
  13. Web site: Newton. Casey. July 24, 2015. Vizio just filed to become a public company. August 20, 2020. The Verge . November 8, 2020. https://web.archive.org/web/20201108111148/http://www.theverge.com/2015/7/24/9037957/vizio-ipo-television. live.
  14. Web site: Vizio reveals how it secretly tracks what you're watching in IPO plan. August 20, 2020. Fortune . November 8, 2020. https://web.archive.org/web/20201108090422/https://fortune.com/2015/07/26/vizio-ipo/. live.
  15. Web site: April 10, 2017. Vizio's $2-billion sale to LeEco called off over 'regulatory headwinds'. August 20, 2020. Los Angeles Times . May 27, 2020. https://web.archive.org/web/20200527145157/https://www.latimes.com/business/technology/la-fi-tn-vizio-leeco-20170410-story.html. live.
  16. Web site: Are Going-Out Companies Paying Too Much? . August 20, 2020. usa.chinadaily.com.cn. October 19, 2021. https://web.archive.org/web/20211019175217/http://usa.chinadaily.com.cn/business/2016-08/03/content_26322737.htm. live.
  17. Web site: July 27, 2016. To see why LeEco bought Vizio, look at the Chinese company's smartphones. August 20, 2020. Los Angeles Times . November 8, 2020. https://web.archive.org/web/20201108092944/https://www.latimes.com/business/technology/la-fi-tn-leeco-vizio-20160727-snap-story.html. live.
  18. Web site: Schiff . Allison . October 28, 2020 . Vizio Reorgs around Its Data Biz with the Full Integration of Inscape . June 13, 2021. AdExchanger . June 12, 2021 . https://web.archive.org/web/20210612083943/https://www.adexchanger.com/tv-2/vizio-reorgs-around-its-data-biz-with-the-full-integration-of-inscape/ . live .
  19. Web site: Angwin. Julia. Julia Angwin. Own a Vizio Smart TV? It's watching you. August 20, 2020. Business Insider. April 28, 2019. https://web.archive.org/web/20190428093323/https://www.businessinsider.com/own-a-vizio-smart-tv-its-watching-you-2015-11. live.
  20. News: Maheshwari. Sapna. February 7, 2017. Is Your Vizio Television Spying on You? What to Know . The New York Times. August 20, 2020. 0362-4331. September 26, 2020. https://web.archive.org/web/20200926152830/https://www.nytimes.com/2017/02/07/business/vizio-television-vizio-collected-viewers-habits-consent.html. live.
  21. Web site: Visser. Nick. February 7, 2017. Vizio To Pay Millions After Secretly Spying On Customers. August 20, 2020. HuffPost . January 22, 2021. https://web.archive.org/web/20210122070120/https://www.huffpost.com/entry/vizio-settlement_n_589962dee4b0c1284f27e534. live.
  22. News: Vizio agrees to pay $2.2 million to settle FTC's television-spying case. Washington Post. February 7, 2017. February 7, 2017. https://web.archive.org/web/20170207184909/https://www.washingtonpost.com/business/economy/vizio-agrees-to-pay-22-million-to-settles-ftcs-television-spying-case/2017/02/06/3d4d4b16-ec8f-11e6-9662-6eedf1627882_story.html. live.
  23. Web site: Tsukayama. Hayley. Vizio TVs were spying on their owners, the government says. August 20, 2020. ChicagoTribune.com . February 7, 2017 . September 18, 2020. https://web.archive.org/web/20200918200256/https://www.chicagotribune.com/business/blue-sky/ct-vizio-tvs-have-been-spying-on-their-owners-the-government-says-20170207-story.html. live.
  24. Web site: Henderson. Juliana Gruenwald. February 6, 2017. VIZIO to Pay $2.2 Million to FTC, State of New Jersey to Settle Charges It Collected Viewing Histories on 11 Million Smart Televisions without Users' Consent. February 7, 2017. February 7, 2017. https://web.archive.org/web/20170207013532/https://www.ftc.gov/news-events/press-releases/2017/02/vizio-pay-22-million-ftc-state-new-jersey-settle-charges-it. live.
  25. Web site: Vizio tracked and sold your TV viewing habits without consent (updated). August 20, 2020. Engadget . February 6, 2017 . October 26, 2020. https://web.archive.org/web/20201026111752/https://www.engadget.com/2017-02-06-vizio-smart-tv-viewing-history-settlement-ftc.html. live.
  26. Web site: Chinese electronics firm LeEco will acquire TV maker Vizio for $2 billion [Update]]. Ars Technica. July 26, 2016. April 10, 2017. April 10, 2017. https://web.archive.org/web/20170410205509/https://arstechnica.com/business/2016/07/chinese-electronics-firm-leeco-will-acquire-tv-maker-vizio-for-2-billion/. live.
  27. Web site: LeEco deal to buy Vizio for $2 billion falls through. CNET. April 10, 2017. April 10, 2017. https://web.archive.org/web/20170410200353/https://www.cnet.com/news/leeco-deal-to-buy-vizio-for-2-billion-falls-through/. live.
  28. Web site: LeEco's abandoned Vizio acquisition is just the latest in a series of missteps. Ars Technica. April 10, 2017. April 10, 2017. April 10, 2017. https://web.archive.org/web/20170410204524/https://arstechnica.com/gadgets/2017/04/regulatory-headwinds-shut-down-leecos-2-billion-purchase-of-vizio/. live.
  29. Web site: Spangler . Todd . 2024-02-14 . Walmart Eyeing Deal to Buy Vizio for More Than $2 Billion: Report . 2024-02-17 . Variety . en-US.
  30. Web site: Maddaus . Gene . 2018-12-01 . Vizio and LeEco Settle Dispute Over Busted $2 Billion Sale . 2024-02-17 . Variety . en-US.
  31. Web site: Vizio Smart TV. live. Strong IPTV. March 5, 2021. June 19, 2021. June 24, 2021. https://web.archive.org/web/20210624203148/https://www.strongiptv.co.uk/add-apps-vizio-smart-tv/.
  32. Web site: Welch. Chris. August 1, 2018. Vizio is launching a free streaming service and giving it its own TV input. August 20, 2020. The Verge . November 9, 2020. https://web.archive.org/web/20201109041930/https://www.theverge.com/2018/8/1/17639790/vizio-watchfree-free-streaming-service-features-channels. live.
  33. Web site: Katzmaier. David. Vizio's new 2018 TVs: affordable, accent on picture quality. August 20, 2020. CNET . August 26, 2020. https://web.archive.org/web/20200826033058/https://www.cnet.com/news/vizio-2018-m-series-p-series-tvs-do-local-dimming-for-less/. live.
  34. Web site: July 7, 2019. How I Made It: He lost money as a young CEO. Then he founded TV giant Vizio. August 20, 2020. Los Angeles Times . August 19, 2020. https://web.archive.org/web/20200819200505/https://www.latimes.com/business/la-fi-himi-william-wang-vizio-20190707-story.html. live.
  35. Web site: Dave. Dreeszen. Vizio Direct leaves North Sioux for the Dunes. August 20, 2020. Sioux City Journal . February 24, 2010 . June 26, 2018. https://web.archive.org/web/20180626135633/https://siouxcityjournal.com/news/local/vizio-direct-leaves-north-sioux-for-the-dunes/article_eecf6fc3-1cf2-5be2-bc55-783e2595008d.html. live.
  36. Web site: 7 highlights from Vizio's IPO filing. August 20, 2020. www.bizjournals.com. April 17, 2017. https://web.archive.org/web/20170417200135/http://www.bizjournals.com/losangeles/news/2015/07/29/7-highlights-from-vizio-s-ipo-filing.html. live.
  37. Web site: Vizio: Who We Are. live. Vizio. February 8, 2021. https://web.archive.org/web/20210208193523/https://www.vizio.com/en/careers.
  38. Web site: Vizio creates new business unit to sell ads directly to marketers. August 20, 2020. Marketing Dive . October 8, 2020. https://web.archive.org/web/20201008213918/https://www.marketingdive.com/news/vizio-creates-new-business-unit-to-sell-ads-directly-to-marketers/568868/. live.
  39. Web site: Spangler. Todd. March 1, 2021. Vizio Files for IPO: TV Maker Had 12.2 Million Streaming Accounts at End of 2020. June 13, 2021. Variety . April 11, 2021. https://web.archive.org/web/20210411022420/https://variety.com/2021/digital/news/vizio-files-for-ipo-1234918829/. live.
  40. Web site: Vizio Gets Into Advertising, Boosts Smart TV Sales. June 13, 2021. Ocbj.com. June 9, 2020 . June 24, 2021. https://web.archive.org/web/20210624205303/https://www.ocbj.com/news/2020/jun/09/vizio-gets-advertising-boosts-smart-tv-sales/. live.
  41. Web site: Welch. Chris. March 1, 2021. Vizio files to go public, has sold over 80 million TVs. June 13, 2021. The Verge . June 24, 2021. https://web.archive.org/web/20210624202454/https://www.theverge.com/2021/3/1/22308068/vizio-ipo-filing-smartcast-inscape-tvs-soundbars-vzio. live.
  42. Web site: Vizio Tops 12M Active Accounts as It Plans IPO . June 13, 2021 . FierceVideo . March 2, 2021 . June 24, 2021 . https://web.archive.org/web/20210624204902/https://www.fiercevideo.com/video/vizio-tops-12m-active-accounts-as-it-plans-ipo . live .
  43. Web site: Vizio, A Smart TV Maker Built for Streaming Revolution, Goes Public . Deadline. March 25, 2021 . April 14, 2021 . April 14, 2021 . https://web.archive.org/web/20210414153741/https://deadline.com/2021/03/vizio-smart-tv-streaming-ipo-1234720964/. live.
  44. Web site: TV Maker Vizio Falls in Debut after Downsized IPO . March 26, 2021. Bloomberg . April 5, 2021 . March 25, 2021 . https://web.archive.org/web/20210325190406/https://www.bloomberg.com/news/articles/2021-03-25/foxconn-backed-tv-maker-vizio-falls-in-debut-after-downsized-ipo. live.
  45. News: March 25, 2021 . TV Maker Vizio Valued at $3.2 Billion after Opening 17% Lower in NYSE Debut . Reuters . June 13, 2021 . June 24, 2021 . https://web.archive.org/web/20210624204135/https://www.reuters.com/article/us-vizio-ipo-idUSKBN2BH2OT. live.
  46. Web site: Hayes . Dade . March 25, 2021 . Vizio, A Smart TV Maker Built For Streaming Revolution, Goes Public . June 13, 2021 . Deadline . April 16, 2021 . https://web.archive.org/web/20210416004328/https://deadline.com/2021/03/vizio-smart-tv-streaming-ipo-1234720964/ . live .
  47. Web site: Vaughan-Nichols. Steven J.. Software Freedom Conservancy sues Vizio for GPL violations. October 20, 2021. .
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  49. Web site: Vizio lawsuit.
  50. Web site: Docket for Software Freedom Conservancy, Inc. v. Vizio, Inc., 8:21-cv-01943 . December 1, 2021 . CourtListener .
  51. Web site: First Update on the Vizio lawsuit - Conservancy Blog - Software Freedom Conservancy . December 1, 2021 . SFConservancy.org .
  52. News: Claburn . Thomas . GPL legal battle: Vizio told it will face contract claims . . May 16, 2022 . May 18, 2022 .
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  58. Web site: Vizio tops in LCD TV sales in second quarter. CNET.
  59. News: Another Manufacturer Drops Plasma. The New York Times. February 11, 2009 . May 7, 2009. April 15, 2009. https://web.archive.org/web/20090415165246/http://gadgetwise.blogs.nytimes.com/2009/02/11/another-manufacturer-drops-plasma/. live.
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  62. Web site: Archer. John. Vizio Unveils New High-Performance 4K TVs And Sound Bars. August 20, 2020. Forbes . November 5, 2018. https://web.archive.org/web/20181105061027/https://www.forbes.com/sites/johnarcher/2017/04/25/vizio-unveils-new-high-performance-4k-tvs-and-sound-bars/. live.
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  64. Web site: Gartenberg. Chaim. July 24, 2018. Vizio's 2018 flagship P-Series Quantum TV is now available for $2,099.99. August 20, 2020. The Verge . November 9, 2020. https://web.archive.org/web/20201109025907/https://www.theverge.com/2018/7/24/17609876/vizio-2018-flagship-p-series-quantum-tv-available-65-inch-2099-dollars. live.
  65. Web site: Vizio rolls out its Apple AirPlay and HomeKit integrations to its SmartCast TV platform. August 20, 2020. TechCrunch. July 31, 2019 . October 19, 2021. https://web.archive.org/web/20211019175209/https://techcrunch.com/2019/07/31/vizio-rolls-out-its-apple-airplay-and-homekit-integrations-to-its-smartcast-tv-platform/. live.
  66. Web site: Cipriani. Jason. June 30, 2020. Vizio's 2021 lineup launches today, with its first OLED TV and Elevate soundbar arriving this fall. January 4, 2021. CNN Underscored . December 4, 2020. https://web.archive.org/web/20201204030349/https://www.cnn.com/2020/06/30/cnn-underscored/vizio-2021-tv-audio-lineup-availability/index.html. live.
  67. Web site: Chin. Monica. May 5, 2020. Vizio conquered the smart TV; now it wants to put Atmos in your living room. June 13, 2021. The Verge . June 24, 2021. https://web.archive.org/web/20210624203224/https://www.theverge.com/2020/5/5/21233344/vizio-elevate-interview-william-wang-ceo-soundbar-audio. live.
  68. Web site: Chin. Monica. May 5, 2020. Vizio conquered the smart TV; now it wants to put Atmos in your living room. August 20, 2020. The Verge . May 28, 2020. https://web.archive.org/web/20200528165815/https://www.theverge.com/2020/5/5/21233344/vizio-elevate-interview-william-wang-ceo-soundbar-audio. live.
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