Telly’s Plan For ‘Free’ Ad-Based TV Revolution Runs Into Quality Control Problems

Back in 2023 we noted how a company named Telly proclaimed it had come up with a new idea for a TV: a free TV, with a second small TV below it, that shows users ads pretty much all of the time. While the bottom TV could also be used for useful things (like weather or a stock tracker), the fact it was constantly bombarding you with ads was supposed to offset any need for a retail price.

But apparently there’s been trouble in innovation paradise.

Shortly after launch, Telly proclaimed that it expected to ship more than half a million of the ad-laden sets. Within a few months it had announced it had already received 250,000 pre-orders. But a recent report by Lowpass indicates that only 35,000 of the sets had made it to peoples’ homes.

What was the problem? Ars Technica, Lowpass and The Verge note that the problems began with a substandard shipping process that resulted in a lot of TVs showing up broken to folks who pre-ordered. Reddit is also full of complaints about general quality control issues, like color issues, ads being played too loudly, odd connectivity issues, remote controls randomly unpairing, and more.

Still, there’s evidence that the idea might still have legs, as the premise itself appears profitable:

“The investor update reportedly said Telly made $22 million in annualized revenue in Q3 2025. This could equate to about $52 in advertising revenue per Telly in use per month ($22 million divided by 35,000 TVs divided by 12 months in a year is $52.38).

That’s notably more than what other TV companies report, as Lowpass pointed out. As a comparison to other budget TV brands that rely heavily on ads and user tracking, Roku reported an average revenue per user (ARPU) of $41.49 for 2024. Vizio, meanwhile, reported an ARPU of $37.17 in 2024.”

The TV industry had already realized that they can make more money tracking your viewing and shopping behavior (and selling that information to dodgy data brokers) long term than they do on the retail value of the set. This just appears to be an extension of that concept, and if companies like Telly can get out of their own way on quality control, it’s likely you’ll see more of it.

In one sense that’s great if you can’t afford the newest and greatest TV set. It’s less great given that the United States is too corrupt to pass functional consumer privacy protections or keep its regulators staffed and functional, meaning there are increasingly fewer mechanisms preventing companies like this from exploiting all the microphone, input, and other data collected from users on a day-to-day basis.

I personally want the opposite experience; I’m willing to pay extra for a dumb television that’s little more than a display panel and some HDMI inputs. A device that has no real “smart” internals or bloated, badly designed GUI made by companies more interested in selling ads than quality control. Some business class TVs can sometimes fit the bill, but by and large it’s a segment the industry clearly isn’t interested in, because there’s much, much more money to be made spying on and monetizing your every decision.