Sonos is reportedly collaborating with online advertising firm The Trade Desk on a soon-to-be-announced video streaming device, which has likely faced delays. This information comes from Janko Roettgers in his September 12 Lowpass newsletter, where he referenced multiple sources familiar with the partnership.
The Trade Desk, a publicly traded company valued at over $50 billion, positions itself as an omnichannel advertising platform for the open internet. In a previous report from August, Roettgers revealed that The Trade Desk has been developing its own smart TV operating system since 2019, aiming to compete with established players like Roku, Amazon, and Google. However, this has been disputed by The Trade Desk’s CEO, as reported by Digiday.
While discussions have circulated about Sonos possibly venturing into the video streaming sector—sparked by a 2023 report from Bloomberg—there has been little clarity regarding the software Sonos intends to use. Sonos primarily focuses on music streaming and has experienced significant challenges since a troublesome app update in May. Although the company produces soundbars akin to those from Amazon Fire TV and Roku, these devices are limited to audio playback and do not feature a comprehensive operating system like typical streaming devices. Although Sonos has developed apps for various platforms, it has not directly engaged with the streaming ecosystem occupied by Roku, Google TV, Amazon Fire TV, and Apple’s tvOS. The recent introduction of the Sonos Ace headphones marked the company’s initial step beyond traditional speakers. CEO Patrick Spence mentioned that two new products set for launch this year have been postponed until improvements are made to their app and platform.
Roettgers indicates that teaming up with a third-party like The Trade Desk could address several challenges at once. By licensing a pre-existing platform, Sonos could sidestep the need to create one from the ground up. Given the company’s ongoing struggles with its app—along with considerable expenditures aimed at rectifying these issues and recent staff reductions intended for sustainability—resources for new software projects are limited.
Building relationships with major streaming services such as Netflix, Disney+, Amazon Prime Video, and HBO is notoriously difficult. However, The Trade Desk reportedly has established connections with these platforms. According to Roettgers, the company has recently begun selling advertisements for Netflix and collaborates with significant media entities like NBCUniversal, Fox, and CBS. Sources suggest that The Trade Desk has secured agreements with various well-known streaming services for participation on its platform.
Moreover, The Trade Desk appears willing to allow Sonos significant influence over the design and feel of the software. This is likely an attractive aspect of their partnership, as streaming platforms operated by Roku, Google, and Amazon maintain strict licensing requirements that can affect the interface, branding, and even remote control layout of the devices they license.
