The Trade Desk and DIRECTV partner on custom Ventura TV OS

NEW YORK - The Trade Desk (TTD), a $24 billion digital advertising technology company with impressive 23% year-over-year revenue growth, and DIRECTV announced Wednesday they will develop a custom version of Ventura TV OS that integrates DIRECTV’s streaming user interface, according to a press release.

The customized operating system is being designed for deployment by third-party TV manufacturers, retailers, and hospitality partners seeking a streamlined OS solution with a recurring revenue model. According to InvestingPro data, The Trade Desk maintains a robust 79% gross profit margin, suggesting strong potential for this new revenue stream.

Through this integration, viewers will be able to access free ad-supported content and streaming apps from the Ventura TV OS app store within a single platform. Users will have access to MyFree DIRECTV, the company’s free ad-supported streaming television service, with options to upgrade to DIRECTV’s Genre Packs and Signature Packages.

"This strategic alliance with The Trade Desk will meaningfully expand access to DIRECTV while offering consumers even greater flexibility, choice and control," said Vikash Sharma, Head of Product at DIRECTV.

Matthew Henick, SVP of Ventura TV OS, stated that "TV manufacturers deserve more choice in how they build their businesses" and that the collaboration aims to "unlock new revenue" while powering "a fairer advertising ecosystem."

The companies position the partnership as addressing fragmentation in the TV landscape by creating what they describe as a seamless ecosystem with improved search and discovery features for audiences.

Ventura TV OS was designed to create a more transparent streaming ecosystem for original equipment manufacturers, advertisers, and media publishers, according to the companies.

The announcement did not specify a launch date for the custom operating system. With The Trade Desk’s strong financial health score rated as "GREAT" by InvestingPro, investors seeking detailed analysis can access the comprehensive Pro Research Report, which provides deep-dive analysis of TTD’s business model, financials, and growth prospects among 1,400+ top stocks covered.

In other recent news, The Trade Desk has announced plans to launch Audience Unlimited, a significant upgrade to its third-party data marketplace. This new platform aims to transform the way advertisers use third-party data by leveraging AI to score data segments for relevance, offering a more cost-effective solution. Additionally, The Trade Desk has introduced new features to its Kokai platform, including Audience Unlimited and Koa Adaptive Trading Modes, to enhance AI capabilities for advertisers. In terms of analyst activity, BofA Securities has lowered its price target for The Trade Desk to $49.00 while maintaining an Underperform rating, citing valuation concerns. Wolfe Research also reduced its price target to $60.00 but maintained an Outperform rating, citing a favorable setup for the upcoming third-quarter earnings. Guggenheim decreased its price target to $55.00, maintaining a Buy rating, due to competitive pressures from Amazon’s demand side platform. These developments reflect a mix of strategic advancements and analyst adjustments for The Trade Desk.

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