Telly, the company offering "free" televisions in exchange for advertising exposure and user data, faced significant challenges in fulfilling its ambitious rollout plans, according to a recent report. While the company's business model hinges on generating revenue through targeted advertising on its dual-screen TVs, the actual number of devices in consumers' homes fell far short of initial projections.
Internal documents obtained by Lowpass revealed that as of Q3 2023, Telly had only managed to place 35,000 TVs in households. This figure contrasts sharply with the company's initial forecast of shipping 500,000 units during the summer of 2023. While Telly announced in June 2023 that 250,000 people had signed up to receive a set, and later stated plans to ship millions more in 2024, the actual deployment rate lagged considerably. The company estimates the value of each TV at $1,000, a figure used to justify the data collection and advertising requirements imposed on users.
The slow rollout raises questions about the viability of Telly's ad-supported TV model. The company's revenue stream is directly tied to the number of active devices and the engagement of viewers with the secondary advertising screen. With a limited installed base, Telly's ability to attract significant advertising dollars and compete with established players in the connected TV (CTV) market is constrained. The CTV advertising market is fiercely competitive, with companies like Roku, Amazon, and Samsung already commanding substantial market share. Telly's unique approach, requiring users to accept constant tracking and advertising in exchange for a free TV, may face resistance from consumers concerned about privacy.
Telly, which debuted in May 2023, operates on the premise that the value of user data and targeted advertising offsets the cost of the television itself. The dual-screen design, featuring a smaller, secondary display dedicated to advertising and information, is central to this model. Users are required to complete a detailed survey and agree to constant tracking in order to receive the free TV. Failure to comply, such as covering the secondary screen, results in a charge for the device.
Looking ahead, Telly faces the challenge of scaling its operations and overcoming logistical hurdles to meet its ambitious shipping targets. The company's success hinges on its ability to convince consumers to embrace its data-intensive model and attract advertisers willing to pay a premium for targeted reach. Whether Telly can bridge the gap between its initial promises and actual performance remains to be seen.
Discussion
Join the conversation
Be the first to comment