No Such Thing As Free TV (It Could Cost You $1000)
By Greg Kahn
Emerging Tech Exchange
Founder & CEO
Published on July 18, 2023
Hollywood studios, writers, and actors are continuing to fight over an economic content landscape that doesn’t exist anymore. So it’s as perfect a time as any to look at the ancillary business models and the way startups are exploring opportunities in television.
In May, Pluto TV co-founder Ilya Pozin introduced an intriguing concept called Telly: a free TV set. Yes, no annoying warranty pitches from Best Buy salespeople with this electronics product.
Naturally, there's a catch.
In exchange for accepting a free 55-inch 4K dual-screen Telly TV, users must agree to accept constant advertisements. The ads displayed in a slim strip at the bottom of the screen, known as the "Smart Display." And that’s not all consumers must agree to.
As the first 250,000 Telly consumers begin receiving their sets this week, Variety’s Todd Spangler details the company’s unique terms of service. In addition to providing detailed demographic information (age, gender, address), Telly users must:
Users must also provide information on purchasing behaviors, brand preferences, and viewing habits.
Users must agree to let their data be used for serving targeted ads.
Telly's TVs include a sensor that detects the number of people in front of the screen.
The TV must be used as the primary television in the household.
The TV must be kept connected to the internet at all times.
Ad-blocking software is not allowed to be used.
Physical modifications or attachment of peripheral devices not approved by Telly are prohibited.
Any attempt to open the product's enclosure will be considered an unauthorized modification.
And here’s the really big deal: Failure to comply with Telly’s TOS may result in a demand to return the TV or charges of up to $1,000 on the consumer’s associated credit card.
To combat banner blindness among its “always-on” users, Telly offers various widgets showcasing sports scores, news tickers, weather updates, and stock prices.
Do you think that’s all just too many demands in exchange for a “free” TV?
Well, again, the economics of TV are changing. As Telly expects to ship 500,000 sets in total by the end of the year, it’s lined up some major partners who are willing to give it a shot.
Telly has signed up Nielsen data licensing to gather viewership and ad effectiveness insights, while ad networks Magnite and Microsoft Advertising have joined CTV ad platform MNTN as “preferred partners” providing ad serving. And to make sure the sound is loud and clear, Harman Kardon has agreed to power Telly’s integrated sound bar.
At a time when Hollywood’s dealmaking is stalled, Telly’s offering may seem outlandish, but it’s certainly clear. Is this where the entertainment industry is headed?
Greg Kahn
Emerging Tech Exchange
Founder & CEO
