Looking at Vizio's financial records[0], the numbers make it clear.
They seperate everything into 2 distinct businesses, Device and Platform+.
Device represents their hardware business of selling physical TVs and soundbars. Platform+ covers all of their other "software-related" business, mainly consisting of ad delivery and selling user data to third parties.
2019:
- Device Net Revenue = $1.7 billion
- Device Gross Profit = $125 million
- Platform+ Net Revenue = $63 million
- Platform+ Gross Profit = $40 million
2023:
- Device Net Revenue = $1.0 billion
- Device Gross Profit = -($8.6 million)
- Platform+ Net Revenue = $598 million
- Platform+ Gross Profit = $364 million
So over the course of just 4 years:
- hardware revenue is down 40% and is actually losing money (confirms they are indeed selling the TVs at a loss)
- Ad/user data revenue, however, is up almost ten-fold (+949%)
- total gross profits of the two combined are up over 54%
[0] https://investors.vizio.com/financials/quarterly-results/def...