Telly’s free 55-inch 4K dual-screen TV sets are set to arrive at users’ homes this week — but of course, there’s a catch.
The start-up, which plans to ship some 500,000 free, ad-supported TVs in 2023 in the U.S., is calling the initial wave a “public beta program.” The company says the new Telly households represent a diverse cross-section of the U.S. population, although the initial user base overindexes on education level and household income — and also skews toward Gen Zers and millennials.
According to Telly, more than 250,000 people have signed up to receive a free TV set, which displays an always-on, rotating ad unit on a 9-inch-high second screen situated below the main 55-inch one. Each unit also includes a free Chromecast with Google TV adapter. The bulk of the half-million TVs will go out in the fourth quarter of 2023, Telly chief strategy officer Dallas Lawrence said: “We think there’s no better Black Friday deal than free.”
To receive the free TV, Telly users must submit detailed demographic info (such as age, gender and address), as well as purchasing behaviors, brand preferences and viewing habits, and they must agree to let their data be used for serving targeted ads. Telly’s TVs include a sensor that detects how many people are in front of the screen at any given moment.
So what’s the catch? Telly users must agree to several conditions under the company’s terms of service. If someone doesn’t abide by the TOS, Telly reserves the right to demand the TV be shipped back — otherwise, it will charge up to $1,000 to the credit card associated with a given account.
Among the Telly TV requirements: You must “use the product as the primary television in your household”; you must keep the TV connected to the internet at all times; and you are not allowed to use any ad-blocking software. In addition, users may not make “physical modifications to the product or attach peripheral devices to the product not expressly approved by Telly,” the company says in its terms of service. “Any attempt to open the product’s enclosure will be deemed an unauthorized modification.”
Overall, Telly believes the value proposition of its free, ad-supported TVs will result in a very positive consumer experience — and, at the same time, let advertisers access a hard-to-reach group of younger-skewing consumers.
Telly has inked a data-licensing deal with Nielsen, which plans to collect and interpret viewership and ad effectiveness insights for both advertisers and TV programmers. Telly said ad networks Magnite and Microsoft Advertising will join initial launch partner MNTN as preferred partners. In addition, the company announced that it selected audio-products company Harman Kardon to power the company’s integrated sound bar.
“We are thrilled to begin shipping what is by far the smartest television ever built to consumers,” Ilya Pozin, CEO and founder of Telly, who previously was a co-founder of Pluto TV (now owned by Paramount), said in a statement. “Our disruptive ad-supported business model makes the television completely free to consumers, but the most exciting thing about Telly is the technology that enables our dual-screen television to get better with every update. We can’t wait for consumers to see what a truly smart TV can do as we continue to surprise and delight Telly households for years to come.”
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