titanOS Secures $58M Funding to Revolutionize Smart TV OS

The Evolving Landscape of Smart TV Revenue Models

Television manufacturers are increasingly focused on maximizing the long-term value derived from each customer, particularly following an initial hardware sale. Intensified market competition frequently necessitates discounted TV pricing and reduced profit margins. A key strategy for recouping investment involves forging strategic alliances with broadcasting channels, streaming platforms, and advertising networks.

Titan OS: A New Approach to Smart TV Operating Systems

Barcelona-based Titan OS addresses this challenge by providing a smart TV operating system specifically designed to enhance customer lifetime value for TV manufacturers. The company’s core proposition centers around improving the post-sale revenue streams for its partners.

Recent Funding and Growth

Titan OS recently announced a €50 million ($58 million) Series A funding round, spearheaded by Highland Europe, with Mangrove Capital Partners also participating. While the total funding to date remains undisclosed, the company confirmed that a seed funding round completed in 2023 secured investment in the double-digit millions.

Founding and Expertise

Established in 2023, Titan OS was founded by Jacinto Roca, Timothy Edwards, Miquel Barba, and Tobias Pfalzgraff. Roca previously founded Wuaki.tv, a streaming service later acquired by Rakuten, and the other co-founders bring significant experience gained during their tenures at Rakuten.

Current User Base and Partnerships

Currently, Titan OS serves approximately 18 million users, primarily located in Europe and Latin America. This reach is facilitated through partnerships with prominent TV brands such as Philips and JVC.

Addressing Content Discovery Challenges

The software is engineered to streamline content discovery for users. Research from Nielsen in 2023 indicated a growing amount of time is spent searching for content to watch. Titan OS leverages data analytics and a comprehensive content library to minimize this search time.

A Unified Content Experience

The operating system provides access to a diverse range of content, including traditional broadcast television, subscription-based streaming applications, and FAST (free ad-supported streaming television) channels offered through Titan OS’s partnerships.

Revenue Streams and Opportunities

Titan OS generates revenue through several key avenues. It collaborates with numerous FAST services to expand their audience reach. Furthermore, advertising opportunities exist on the TV’s home screen and within streaming content, reaching a substantial user base. Content partners are particularly interested in advertising opportunities related to live events, such as sports broadcasts.

Shoppable Ads and Revenue Growth

The platform also supports shoppable advertisements, enabling users to make purchases directly through actions like scanning QR codes. The company reports a tenfold increase in revenue over the past two years, driven by these initiatives.

Strategic Partnerships with TV Manufacturers

Even TV manufacturers with established operating systems, like Sony, are exploring partnerships with companies like Titan OS to broaden their FAST channel offerings. Industry reports suggest that advertising revenue is becoming increasingly significant for TV makers, potentially surpassing hardware sales in profitability.

The Shift in Profitability

“Historically, hardware manufacturers derived the majority of their profits from device sales,” explains Edwards, COO of Titan OS. “However, we are now witnessing a shift where some manufacturers generate greater revenue from ongoing content and advertising than from the hardware itself. This represents a fundamental change in the industry.”

“We empower TV companies to generate sustained revenue from content and advertising after the initial sale, a departure from the current market standard.”

Expanding European Reach

To further expand its presence in Europe, Titan OS is actively enhancing its portfolio of localized, ad-supported channels tailored to specific geographic regions. This strategy allows the company, which competes with firms like Whale TV and Xperi’s TiVO, to offer over 100 channels across these markets.

Team and Future Plans

Titan OS currently employs 200 individuals across offices in Barcelona, Amsterdam, and Taipei. The new funding will be allocated to expanding the product and sales teams, forging new partnerships, and developing innovative advertising solutions. The company intends to maintain its growth trajectory and secure additional funding in the coming year.

Investor Perspective

Laurence Garrett, a partner at Highland Europe, draws a parallel between Titan OS and WeTransfer, a previous investment of the firm that was acquired by Bending Spoons.

“Titan OS offers the compelling combination of an advertising model layered on top of a core operating system. This resonated with our experience with WeTransfer, and the partners were enthusiastic about it,” Garrett stated.

Garrett also highlighted the company’s European origins as a key advantage, enabling a deeper understanding of local market nuances compared to competitors originating from outside the region.