The Trade Desk (TTD) is apparently developing its own smart TV operating system (OS), which it plans to license to device manufacturers, according to an exclusive report by the Lowpass. With this move, the digital advertising company is gearing up to challenge industry giants like Roku (ROKU), Google (GOOGL), and Amazon (AMZN).
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Details of TTD’s Smart TV OS
According to the report, this project has attracted talent from senior Roku employees, and some team members have even kept their employment with The Trade Desk under wraps on LinkedIn. Furthermore, Trade Desk has been actively pitching its smart TV OS to various hardware makers, offering what sources describe as more favorable revenue-sharing deals compared to those provided by its competitors.
Additionally, the company is reportedly allowing hardware partners greater flexibility in customizing the user interface. According to insiders cited by the report, the company has already secured at least one partner and could potentially see the first device running its OS hit the market as early as next year.
Why Is TTD Looking to Enter the Smart TV OS Market?
Apparently, the Trade Desk is concerned about being excluded from the lucrative smart TV advertising market by platform operators like Roku. Connected TV operators like Roku have always had the upper hand when it comes to the digital advertising market and have long pressured publishers to allow them to sell most, if not all, ads on their platforms. As a result, if the Trade Desk is indeed developing its own Smart TV OS, it would help it expand its advertising channels.
Is TTD Stock a Buy Right Now?
Analysts remain bullish about TTD stock, with a Strong Buy consensus rating based on 17 Buys and one Hold. Over the past year, TTD has increased by more than 25%, and the average TTD price target of $106.93 implies an upside potential of 2.3% from current levels.
