The Strategic Pivot: From Hardware Sales to Advertising Dominance
The television industry is experiencing a fundamental business model transformation. Retailers are no longer content with simply selling TV sets—they’re building integrated ecosystems that turn every screen into an advertising and e-commerce platform. According to Omdia’s latest TV Design & Features Tracker, retailers will command 47% of the North American TV operating system market by 2029, nearly doubling their current 27% share. This dramatic shift signals that traditional TV manufacturers are losing control of the consumer experience to retail giants who see screens as gateways to recurring advertising revenue.
The economics driving this change are compelling. While hardware margins remain razor-thin, retail media networks deliver high-margin advertising income that continues long after the initial sale. Walmart and Amazon have recognized that controlling the operating system means controlling the customer relationship, the data, and ultimately the monetization opportunities that extend far beyond the transaction at checkout.
Walmart’s Aggressive CastOS Expansion Reshapes Competitive Dynamics
Omdia identifies 2027 as the critical inflection point when Walmart’s CastOS shipments will reach 14.0 million units, driven by the company’s strategic acquisition of Vizio and aggressive platform expansion. The numbers tell a story of rapid acceleration: Vizio unit shipments jumped from 4.8 million in 2024 to a projected 6.6 million in 2025—a 37.5% increase that demonstrates Walmart’s commitment to market dominance.
Amazon is responding with its own FireTV expansion, though at a more measured pace. FireTV shipments grew from 6.1 million units in 2024 to an estimated 6.8 million in 2025, representing 11.5% growth. By 2029, these two retail powerhouses will collectively ship 23.6 million units into a total North American market of 50.0 million units, effectively controlling nearly half of all new TV operating system deployments.
This retailer duopoly has profound implications for traditional TV manufacturers and competing operating systems. Brands that once controlled their own software destiny must now negotiate for shelf space and consumer attention with retailers who increasingly favor their proprietary platforms.
AI-Powered Shopping Features Blur the Line Between Content and Commerce
The convergence of artificial intelligence and e-commerce functionality emerged as a dominant theme at CES 2026. VIDAA OS announced a comprehensive rebrand to V Home OS, signaling ambitions beyond television to become a comprehensive AI-enabled shopping portal. The platform’s partnership with Microsoft integrates Copilot’s generative AI capabilities directly into the user interface, fundamentally changing how consumers discover and purchase products.
Google TV introduced interactive shoppable video powered by Gemini AI, creating seamless pathways from content discovery to transaction completion. The technology enables conversational shopping experiences where viewers can ask questions like “Where can I buy those sneakers?” and receive immediate brand identification, pricing information, and purchasing options via QR codes or integrated shopping carts—all without leaving the viewing interface.
Patrick Horner, Practice Leader for TV Set Research at Omdia, emphasized the universal nature of this trend: “Across multiple TV OS platforms, enabling shopping is a key market driver.” This isn’t simply about adding features; it represents a fundamental reimagining of television as an interactive commerce platform rather than a passive content consumption device.
Global Market Fragmentation Creates Regional Operating System Strongholds
While North America consolidates around retailer-controlled platforms, global TV operating system markets remain distinctly fragmented. China continues its trajectory with localized Android implementations dominating 96% market share—a position Omdia expects to remain stable throughout the forecast period due to regulatory requirements and ecosystem preferences.
In markets outside North America and China, Google TV currently leads with 40% share but faces increasing competition from VIDAA (now V Home OS), Titan, and TiVo platforms. This regional fragmentation creates both challenges and opportunities for manufacturers who must navigate multiple platform relationships and technical requirements across different geographies, further complicating the strategic landscape for traditional television brands already squeezed by retailer dominance in their most profitable market.
