Telly's innovative business model, offering "free" televisions in exchange for advertising exposure, faced significant challenges in execution despite showing revenue potential. The company, which debuted in May 2023, struggled to deliver its dual-screen TVs to consumers, impacting its projected revenue streams.
Internal documents revealed a substantial gap between initial projections and actual deployments. By Q3 2025, Telly had only placed 35,000 TVs in homes, a stark contrast to the 500,000 units the company initially aimed to ship in the summer of 2023. While 250,000 people signed up for a Telly in June 2023, the conversion rate to actual deliveries remained low. Telly estimated the value of each TV at $1,000, a figure used to justify the data collection and advertising requirements imposed on users. The company announced plans to ship millions more in 2024, but the Lowpass report suggests that these plans have not materialized.
Telly's struggles highlight the complexities of the ad-supported hardware market. While consumers are increasingly receptive to ad-supported streaming services, the concept of a permanently ad-displaying television faces greater resistance. Competitors in the smart TV market, such as Roku and Amazon, generate substantial revenue through advertising and data collection, but typically do so through software platforms on TVs consumers purchase outright. Telly's model, requiring users to agree to constant monitoring and advertising in exchange for a free device, represents a more aggressive approach.
Telly's business model hinges on its ability to monetize user data and advertising space on its dual-screen TVs. The secondary screen, designed to display ads and information, is a key component of this strategy. However, the requirement that users complete detailed surveys and accept constant tracking has likely deterred many potential customers. The company's future hinges on its ability to streamline its delivery process, address consumer concerns about privacy, and demonstrate the value proposition of its ad-supported TV to both users and advertisers. The company's ability to scale its deployments will be critical in determining its long-term viability in the competitive smart TV market.
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