A new TV manufacturer is currently making a name for itself in the USA. He introduced a television that not only has a soundbar, but also a second screen. What is special, however, is not the device itself, but the fact that the TV is available completely free of charge. How can that be?
The manufacturer’s name is Telly. The start-up is founded and managed by CEO Ilya Pozin, who was also a co-founder of the advertising-financed streaming platform Pluto TV. His past definitely plays a role in the current project. Because the television presented by Telly is also financed by advertising and is therefore completely free. Over the past 24 months, Telly has kept a low profile and tweaked his new device, reports the American entertainment-themed media site, “deadline“.
Telly TV with two screens and soundbar
The Smart TV developed by Telly is the first dual-screen model on the market. The actual TV has a screen diagonal of 55 inches and supports 4K and HDR. Below the main display is a narrower and, above all, lower screen, which can be used to display various information such as sports results, news and the weather, but also to control music or smart devices. If desired, this second screen can also be darkened if, for example, a film is being played on the actual TV.
The company believes that users leave the second screen on even when the actual TV is off – for example to be able to access the control and playback function or additional data. That would then also be the practical side effect for potential advertising partners: the advertising displayed on this screen would then be permanently visible.
The two screens are connected by a premium soundbar with five drivers. The Telly TV also offers three HDMI ports for connecting additional devices. At least the operation of a TV stick is also absolutely necessary, since the television does not have its own system. Telly’s own Android-based operating system is only intended to control the television’s advertising and interactive functions. Therefore, the device comes with a 4K stick with Android TV. As Pozin reports, other TV sticks, for example from Roku, Amazon Fire TV or Apple TV, can also be connected. The TV should be a hub for thousands of apps that users can access. Appropriately, he also brings a camera with him, which can be used for video conferences, for example.
According to the manufacturer, the television would cost around 1000 US dollars in the store, but Telly will deliver it free of charge to interested parties. What does the company expect from this and what’s the catch?
That’s why the Telly TV is free
The company is offering the first 500,000 units produced of its TV for free. Delivery is scheduled for this summer. In order to get free television, interested parties must register on the Telly’s website enter in a list. However, this is only available to users in the USA.
However, entering the first data such as name, e-mail and telephone number in the list is not enough. Once users have filled out these fields, they are redirected to another page and asked to download the Telly app for Android or iOS to their smartphone. You then have to create an account via the app, whereby the manufacturer will request further data at this point. The questions also contain information from the private life of the interested parties. Telly then evaluates the answers and decides which of the applicants will actually get a free television.
It quickly becomes clear what Telly is after: user data. CEO Ilya Pozin is open about it and confirmed the fact in an interview to the American portal “FastCompany“. “We’re giving away the device for free and the whole business model is supported by our advertising, data and affiliate revenue streams,” says the Telly founder. You know where the users live, which car they drive, where they shop and what their income is – “of course everything is anonymous,” says Pozin.
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That’s how strict Telly’s requirements are for users
The terms of use on the website also contain a corresponding reference to data retrieval and processing. “You must sign up for an account, choose a password and username, and provide us with certain information or data, such as your contact information,” it says. And further: “You promise to provide us with accurate, complete and current registration information about yourself.”
According to Telly, anyone who registers and is selected for the free television enters into a contract with the company. This means that users use the Telly TV as the primary television in their household and do not disconnect it from the Internet. Selling the device is prohibited and users must also inform the company of any change of address. If they violate these requirements, they may no longer use Telly’s offer and must return the television.
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Free TV against privacy
In the end, a clear picture emerges: Users don’t get Telly televisions for free, they pay with their privacy. Because the device does not stop recording data even during use. For example, Telly uses the television to track which channels and programs users are watching and sells the data anonymously to providers of various advertising apps. Although televisions in Germany also have this option, users can object to the transfer of data at any time. However, Telly expressly does not offer this opt-out function.
After all, trading in the data and the resulting partnerships are the reason for the company to be able to offer the television free of charge. With this strategy he recovers the production costs for the hardware. “We are very open and transparent,” says Pozin, explaining the procedure. “Everyone knows what they’re getting into, what the value exchange is.”
TECHBOOK means
“A free television – that initially sounds like a great campaign. At least that’s what I thought when I first started researching it. But the longer I worked on Telly’s project, the scarier it became. You get completely naked just to get a TV in return. The extent of Telly’s collecting frenzy leaves one almost speechless. Income, address, preferred shops, stations, programmes, the car brand, sports team – Telly users ask for almost any private information and then sell it on in order to be able to display the perfect advertisement. I find all this more than creepy and would personally never get involved in such a trade. In Germany, such a project would not be feasible at all due to our data protection regulations – fortunately. “- Rita Deutschbein, Editor