Telly Begins Shipping First-of-its-Kind Free Ad-Supported TVs

Telly, the company behind a unique free television that relies on a built-in second screen to run nothing but ads, began shipping the first-of-its-kind dual-screen 55-inch 4K TVs to over 250,000 households last week, a month after the waitlist opened.

The endeavor promises to provide consumers with a free flatscreen, and brands with ad data that’s getting harder to collect as traditional connected TV viewer measurement models are disrupted by cord-cutting and streaming.

To obtain a Telly TV, consumers must agree to have their viewing data used by advertisers. With over two-thirds of Telly registrants reportedly being Gen Z and millennial households, the company is attempting to create a new paradigm of viewer insights, exchanging value (free TVs) for value (their viewing data).

“We are thrilled to begin shipping what is by far the smartest television ever built to consumers,” said Telly CEO Ilya Pozin in an announcement. “The consumer and advertising community’s response has been incredible. 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.”

This comes at a transitional time in streaming. As PYMNTS reported on Wednesday (July 19), Netflix has dropped its cheapest monthly plan that doesn’t include ads and is doubling down on its ad-supported tier, as are other streaming providers.

Telly said it has accumulated a roster of 250,000 households who have registered for free TVs, the company said. Telly TVs are unique in the market and come with a Harman Kardon soundbar offering immersive audio. The thinner display form factor of the second screen serves as a dedicated ad space, which forms the basis for Telly’s business model. To gain access to use the TV, customers must agree to have their viewing data accessed and used by advertisers.

The company said it plans on shipping 500,000 free TVs to consumers by the end of 2023, and “millions more” in 2024.

The next step for Telly is working with media data giant Nielsen, to leverage the data streams for never-before-available tools for advertisers and content owners to target and measure viewership and how effective their advertising campaigns are.

“Telly’s unique business model and technology will completely transform TV measurement,” said Bob Ivins, head of data strategy for Telly. “No other industry player can match the potential of Telly’s insights business, which will provide advertisers and content owners with never-before-available tools to target, oversee, and measure viewership and the effectiveness of advertising.”

Michael Barrett, president and CEO of ad tech firm Magnite, said in the announcement, “Telly represents the latest innovation in TV advertising. Together, we are unlocking new inventory and data, in addition to powerful new performance-driven advertising creative for brands looking to reach engaged consumers on the biggest screen in the home. We look forward to embarking on this exciting journey with Telly, leveraging our expertise and technology to help fuel their progress.”