As connected TV operating systems become central to advertising strategies, executives acknowledge growing tensions between business needs and user expectations. At the StreamTV Show in Denver, Samsung and other leading OS providers discussed the complexities of handling vast amounts of user data while preserving trust and privacy.
Industry Leaders Acknowledge “Inherent Conflict” in Ad-Driven Data Use
During a panel session titled “CTV OS Leader Roundtable: From Drivers to Engagement and Content Strategy,” Takashi Nakano, Vice President of Content and Programming at Samsung TV Plus, described a persistent conflict between the goals of advertisers and the privacy expectations of smart TV users. While viewers generally resist the idea of their viewing data being shared widely, advertisers seek increasingly detailed insights into audience behavior.
“Do you want your data sold out there and everyone to know exactly what you’ve been watching? The answer is generally no,” Nakano said. “Yet, advertisers want all of this data. They want to know exactly what you ate for breakfast.” The remark highlighted how commercial incentives often push up against boundaries that users may not be comfortable crossing.
Nakano also pointed to the growing volume of data collected by streaming platforms, much of which he implied may be excessive or poorly managed. “We’re fortunate to have all that data, but we’re also like, ‘Do we really want to give it all, and hand it all out?’ There’s a constant conflict around that,” he said. As advertising becomes more sophisticated, TV software providers are increasingly being forced to reconsider how much data collection is truly necessary.
Ad Revenue Growth Pressures OS Providers to Collect More Data
With hardware profits thinning, major companies including Samsung, Roku, Amazon, LG, Vizio, and Walmart are turning to software as a long-term revenue stream. That shift has placed new focus on operating systems, which are now designed not only to support user navigation but also to maximize ad effectiveness through behavioral targeting and user data collection.
A recent report by WPP Media projects that connected TV (CTV) advertising will make up approximately 27 percent of overall TV ad revenue by 2025, totaling $41.8 billion. By 2030, that number is expected to reach nearly $72 billion. Research firm eMarketer also forecasts strong growth in CTV ad spending, estimating a jump from $33.35 billion this year to nearly $47 billion by 2028. These projections underscore why OS providers are increasingly incentivized to develop systems that support granular audience tracking.
However, while data-driven advertising strategies may benefit content discovery and revenue models, consumers do not typically choose their TVs based on the operating system. Brands interviewed by Ars Technica have reported that image quality and price remain the top purchase drivers. Nakano acknowledged that while Samsung TV users do tend to engage with the built-in operating system, the software itself is rarely the deciding factor in a sale.
User Experience Still Matters as OS Competition Intensifies
Despite the emphasis on data and advertising, user engagement remains a priority for TV brands looking to maintain relevance in a competitive software environment. Katherine Pond, Group Vice President of Platform Content and Partnerships at Vizio, noted that once a consumer buys a television, OS developers are no longer competing for a sale—but they are still competing for attention. Viewer retention is essential to monetizing content and keeping users within a given ecosystem.
Jennifer Vaux, Vice President of Content Acquisition and Programming at Roku Media, emphasized the importance of a smooth user experience. “You have to create a fitting, and you create a fitting by getting people into content that they love as soon as they can,” she said. Features like content discovery and responsive search functions are central to that effort.
As television hardware continues to improve incrementally, the focus among manufacturers has increasingly shifted to what happens on-screen rather than how it gets there. For OS providers, success now hinges on designing platforms that both serve advertiser needs and support user expectations. Without meaningful attention to usability and privacy, users may opt for alternative streaming solutions, such as dedicated set-top boxes from Apple or Google, that offer better control and cleaner interfaces.