LAS VEGAS — Television manufacturers dazzled attendees of CES 2023 on Friday with their latest smart TV sets, which boast bigger, brighter and more colorful displays. But just as important as the hardware are the operating systems that run those TVs from such companies as Alphabet's Google, Amazon and Roku.
Smart TV operating systems provide a platform for streaming video services and transactional video on demand. They also offer opportunities for TV makers to generate revenue from advertising and consumer purchases.
South Korean firms LG and Samsung and U.S.-based Vizio have proprietary smart TV operating systems. Other companies like TCL, Hisense, Sharp and more license operating systems from Google, Amazon and Roku.
James Sanduski, president of Sharp's U.S. home electronics business, said his firm is making televisions that use either Google TV or Roku OS operating systems.
"We've chosen with our flagship (Aquos) XLED (televisions) to go with Google," Sanduski said.
He added, "The business is changing. Five years ago, it was all about selling the hardware. It's now about trying to create a recurring revenue business model."
CES 2023: Roku Plans Its Own Sets
In a sign of how competitive the market has become, Roku on Wednesday at CES 2023 announced plans to make its own television sets. Roku's hardware business to date has involved making streaming sticks and set-top boxes for consumers to add its platform to their existing TVs.
On Thursday, Roku announced that it now has more than 70 million active accounts worldwide, exceeding analyst estimates for 68 million.
Hisense Pushes Homegrown TV OS
On Thursday, China-based Hisense announced that it will offer its homegrown Vidaa smart TV operating system to the U.S. market. Hisense called Vidaa its "preferred smart TV OS."
Historically Hisense has sold TVs with the Google, Roku and Amazon Fire TV operating systems. Vidaa now looks to challenge Samsung and LG for global market share in smart TV platforms.
The four-day CES 2023 trade show runs through Sunday in Las Vegas. More than 3,200 exhibitors are showing their latest consumer and enterprise tech products at the conference.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
