Smart tv’s maybe affordable but there’s a reason why

1 year ago

Did you know why ‘smart’ televisions are so affordable these days. The reason is some tv makers collect user data and sell it to third parties which can offset the cost.

Most television sets come with internet connections, ad placement and streaming services built in, and despite this prices remain low especially from brands like TCL and Vizio.

For example a 65 inch 4K smart tv with HDR capability can be purchased in the United States for USD$500, with a razor-thin frame, brilliant image quality and built in streaming services.

But beware some manufacturers collect data about users, then sell that data to third-parties. This data includes what types of shows people prefer, their favourite advertisments and so on.

Vizio chief technology officer Bill Bazter said that the money wasn’t made from the actual sale of tv sets.

“Smart TVs can be sold at or near cost to consumers – which is great for consumers – because Vizio is able to monetize those TVs through data collection, advertising, and selling direct-to-consumer entertainment (movies, etc.) which is less great for consumers.”

“It’s not just about data collection. It’s about post-purchase monetization of the TV,” he said.

And there are a few different ways to monetise those TVs post-purchase.

“You sell some movies, you sell some TV shows, you sell some ads, you know. It’s not really that different from The Verge website,” he said.

It’s those additional forms of revenue that helps make the large, beautiful smart TVs from companies like Vizio and TCL so affordable.

Without that revenue stream, Baxter said, consumers would be paying more upfront cost. “We’d collect a little bit more margin at retail to offset it.”

source: Business Insider US