Source Code: Your daily look at what matters in tech.

next-upnext upauthorJanko RoettgersNoneDo you know what's coming up next in the world of tech and entertainment? Get Janko Roettgers' newsletter every Thursday.9147dfd6b1
×

Get access to Protocol

Your information will be used in accordance with our Privacy Policy

I’m already a subscriber
Power

LG has acquired TV ad tech startup Alphonso

Alphonso could help LG build out its smart TV advertising business.

LG has acquired TV ad tech startup Alphonso

Alphonso could help LG monetize its TVs with ads.

Photo: LG

Korean consumer electronics giant LG has acquired a controlling stake in TV advertising measurement startup Alphonso, investing more than $80 million in the company. LG announced the acquisition Wednesday, a day after Protocol first reported that a deal was imminent. With the acquisition, LG is looking to beef up the advertising business on its smart TV platform and better compete with companies like Samsung, Roku, Amazon and Vizio.

"Our investment in Alphonso is a key component of our digital transformation strategy focusing on AI, big data and cloud to fundamentally change how consumers interact with their devices," said LG Home Entertainment President Park Hyoung-sei. "With Alphonso's TV data analysis capabilities, LG will be able to provide even more customized services and content to consumers and we are proud to welcome Alphonso to the LG family."

The two companies began exploring a deal as early as last summer, according to an industry insider.

Founded in 2012, Alphonso has raised around $6 million in funding. The company has been building technology to measure advertising on traditional television in a more granular fashion, and give advertisers similar insights to those available from digital ad campaigns. Alphonso also promises advertisers to bridge the gap between TV viewing and the internet, allowing them to target viewers on both TV and mobile screens.

LG's acquisition of Alphonso is part of a bigger trend of TV manufacturers and smart TV platform operators chasing ad dollars. As consumers cut the cord by the millions, ad-supported streaming services have become a real money-maker for TV brands like Samsung and LG, allowing them to transition from a business purely focused on unit sales to one with recurring revenue streams.

While some of these companies relied on third-party technology to build their advertising businesses, many are looking for ways to maximize their revenue and cut out any middlemen. Roku acquired ad tech startup Dataxu for $150 million in late 2019, and Vizio recently reorganized its advertising business to bring its subsidiary Inscape back into the fold.

In addition to selling ad inventory for apps on their platforms, smart TV makers also run their own free, ad-supported streaming services. Samsung Electronics SVP Sang Kim recently told Protocol that the company is streaming "billions of minutes every month" on its free TV Plus service, which emulates the look and feel of traditional linear television. LG began adding a similar set of streaming channels to its smart TVs in 2016.

Update: This article was updated throughout following LG's announcement.

The metaverse is coming, and Robinhood's IPO is here

Plus, what we learned from Big Tech's big quarter.

Image: Roblox

On this episode of the Source Code podcast: First, a few takeaways from another blockbuster quarter in the tech industry. Then, Janko Roettgers joins the show to discuss Big Tech's obsession with the metaverse and the platform war that seems inevitable. Finally, Ben Pimentel talks about Robinhood's IPO, and the company's crazy route to the public markets.

For more on the topics in this episode:

Keep Reading Show less
David Pierce

David Pierce ( @pierce) is Protocol's editor at large. Prior to joining Protocol, he was a columnist at The Wall Street Journal, a senior writer with Wired, and deputy editor at The Verge. He owns all the phones.

Facebook wants to be like Snapchat

Facebook is looking to make posts disappear, Google wants to make traffic reports more accurate, and more patents from Big Tech.

Facebook has ephemeral posts on its mind.

Image: Protocol

Welcome to another week of Big Tech patents. Google wants to make traffic reports more accurate, Amazon wants to make voice assistants more intelligent, Microsoft wants to make scheduling meetings more convenient, and a ton more.

As always, remember that the big tech companies file all kinds of crazy patents for things, and though most never amount to anything, some end up defining the future

Keep Reading Show less
Karyne Levy

Karyne Levy ( @karynelevy) is the West Coast editor at Protocol. Before joining Protocol, Karyne was a senior producer at Scribd, helping to create the original content program. Prior to that she was an assigning editor at NerdWallet, a senior tech editor at Business Insider, and the assistant managing editor at CNET, where she also hosted Rumor Has It for CNET TV. She lives outside San Francisco with her wife, son and lots of pets.

Protocol | China

China’s edtech crackdown isn’t what you think. Here’s why.

It's part of an attempt to fix education inequality and address a looming demographic crisis.

In the past decade, China's private tutoring market has expanded rapidly as it's been digitized and bolstered by capital.

Photo: Getty Images

Beijing's strike against the private tutoring and ed tech industry has rattled the market and led observers to try to answer one big question: What is Beijing trying to achieve?

Sweeping policy guidelines issued by the Central Committee of the Chinese Communist Party on July 24 and the State Council now mandate that existing private tutoring companies register as nonprofit organizations. Extracurricular tutoring companies will be banned from going public. Online tutoring agencies will be subject to regulatory approval.

Keep Reading Show less
Shen Lu

Shen Lu is a reporter with Protocol | China. She has spent six years covering China from inside and outside its borders. Previously, she was a fellow at Asia Society's ChinaFile and a Beijing-based producer for CNN. Her writing has appeared in Foreign Policy, The New York Times and POLITICO, among other publications. Shen Lu is a founding member of Chinese Storytellers, a community serving and elevating Chinese professionals in the global media industry.

It’s soul-destroying and it uses DRM, therefore Peloton is tech

"I mean, the pedals go around if you turn off all the tech, but Peloton isn't selling a pedaling product."

Is this tech? Or is it just a bike with a screen?

Image: Peloton and Protocol

One of the breakout hits from the pandemic, besides Taylor Swift's "Folklore," has been Peloton. With upwards of 5.4 million members as of March and nearly $1.3 billion in revenue that quarter, a lot of people are turning in their gym memberships for a bike or a treadmill and a slick-looking app.

But here at Protocol, it's that slick-looking app, plus all the tech that goes into it, that matters. And that's where things got really heated during our chat this week. Is Peloton tech? Or is it just a bike with a giant tablet on it? Can all bikes be tech with a little elbow grease?

Keep Reading Show less
Karyne Levy

Karyne Levy ( @karynelevy) is the West Coast editor at Protocol. Before joining Protocol, Karyne was a senior producer at Scribd, helping to create the original content program. Prior to that she was an assigning editor at NerdWallet, a senior tech editor at Business Insider, and the assistant managing editor at CNET, where she also hosted Rumor Has It for CNET TV. She lives outside San Francisco with her wife, son and lots of pets.

Protocol | Workplace

In Silicon Valley, it’s February 2020 all over again

"We'll reopen when it's right, but right now the world is changing too much."

Tech companies are handling the delta variant in differing ways.

Photo: alvarez/Getty Images

It's still 2021, right? Because frankly, it's starting to feel like March 2020 all over again.

Google, Apple, Uber and Lyft have now all told employees they won't have to come back to the office before October as COVID-19 case counts continue to tick back up. Facebook, Google and Uber are now requiring workers to get vaccinated before coming to the office, and Twitter — also requiring vaccines — went so far as to shut down its reopened offices on Wednesday, and put future office reopenings on hold.

Keep Reading Show less
Allison Levitsky
Allison Levitsky is a reporter at Protocol covering workplace issues in tech. She previously covered big tech companies and the tech workforce for the Silicon Valley Business Journal. Allison grew up in the Bay Area and graduated from UC Berkeley.
Latest Stories