We currently do not collect, and might not in the future collect, viewingbehavior data regarding content streamed through VIZIO Internet Apps Plus or content viewed on Smart TVs located outside of the United States. These potential limitations may impair our ability to monetize our Inscape data services.
The success of our Inscape data services will depend on many factors, including our abilityto provide viewing behavior data that advertisers and media content providers find useful and valuable. This ability, in turn, depends to a significant extent on the willingness of consumers to continue to purchase and use our Smart TVs and in ourmaintaining and continuing to grow our community of VIZIO connected units, or VCUs. A VCU represents one of our Smart TVs that has been connected to the Internet and has transmitted data collected by
Maintaining awareness of the VIZIO brand name in existingmarkets and developing and maintaining the VIZIO brand name in new markets are critical to achieving and maintaining widespread awareness of our television and other product and service offerings. The VIZIO name and brand image are integral to thegrowth of our business and expansion into new markets. Maintaining, promoting and positioning our brand will largely depend on the success of our marketing efforts and our ability to consistently provide high quality products. If we fail to achievethese objectives or if our public image or reputation were to be tarnished by negative publicity or perception, our brand, business and operating results could be adversely affected. We also believe that brand recognition will continue to be a keyfactor in maintaining and expanding our customer base and market position, strengthening our bargaining power with customers, manufacturers and third-party service providers and monetizing our Inscape data services. Maintaining and enhancing ourbrand requires us to make substantial investments, and these investments may not achieve the desired goals. Marketing expenses for the years ended December 31, 2013 and 2014 were $35.0 million and $41.0 million, respectively. If we are unableto continue to promote and strengthen the VIZIO brand, or if our brand fails to continue to be viewed favorably by our customers or by consumers, we may not be successful in attracting and acquiring new customers and consumers, which could have amaterial adverse effect on our results of operations and financial condition.
VIZIO® is a registered trademark in the United States and other countries. Our othertrademarks and service marks include: the V logo, VIZIO Internet Apps, VIZIO Internet Apps Plus, Inscape, E-Series, P-Series, Clear Action, Active Pixel Tuning, Ultra Color Spectrum andActive LED Zones. Certain of these trademarks or variants of these trademarks and associated domain names have been registered in other countries and regions. Unless otherwise indicated, all other trademarks, service marks and trade names orreferences thereto appearing in this prospectus are the property of their respective owners.
|(3)||Based on VIZIO internal data as of July 15, 2015.|