Telly's innovative business model, offering "free" televisions in exchange for advertising exposure and user data, faced significant logistical hurdles in its rollout, impacting revenue projections. While the company touted the potential for substantial advertising revenue from its dual-screen TVs, the actual number of devices in consumers' homes fell far short of initial targets.

According to a Q3 2023 investor update cited by Lowpass, Telly had only managed to place 35,000 TVs in households by November 2023. This figure is a stark contrast to the company's initial projection of shipping 500,000 units during the summer of 2023. Despite claiming 250,000 sign-ups in June 2023 and later announcing plans to ship millions more in 2024, the slow deployment rate raised questions about Telly's ability to scale its operations and meet market demand. The company estimated the value of each TV at $1,000, a figure used to justify the stringent data collection and advertising display requirements imposed on users.

The delayed rollout has implications for the broader ad-supported TV market. Telly's model hinges on its ability to deliver targeted advertising through its secondary screen, even when the primary display is off. The limited number of deployed units restricts the reach and effectiveness of its advertising platform, potentially impacting its appeal to advertisers and its ability to generate significant revenue.

Telly, which debuted in May 2023, operates in a competitive landscape dominated by established television manufacturers and streaming platforms. Its unique approach of offering free TVs in exchange for data and advertising distinguishes it from traditional players. However, the company's success depends on overcoming logistical challenges and building a substantial user base to attract advertisers.

Looking ahead, Telly faces the challenge of accelerating its deployment rate and demonstrating the viability of its business model. The company's ability to fulfill its ambitious shipping targets and generate meaningful advertising revenue will be crucial in determining its long-term success in the evolving television market.