Tele, a company started by Pluto TV co-founder Ilya Pozin, announced Monday that it is offering 500,000 55-inch 4K TVs to the public for free, as part of a business model that In which advertisers have picked up the tab to upgrade the consumer’s entertainment.

At the heart of the model, which has been in the works for two years, is a dual-screen Smart TV developed by Tele. The One Screen is a 55-inch 4K HDR home theater television display, divided by a five-driver sound bar from the smaller Smart Screen. The Smart Screen displays information such as news, sports scores and weather, as well as advertisements, which are displayed continuously in a dedicated area on the right side of the Smart Screen.

In addition to TV programming, the hardware supports video calling, video games, AI-enabled voice assistants, music services, and motion-tracking fitness programs.

“Television is the greatest innovation in television since color,” Pozin said in a statement. “Tele is a revolutionary step for both consumers and advertisers.”

“For a long time,” she continued. “Consumers have not been equal parts of the advertising value exchange. Companies are earning billions of dollars from advertisements served on television, yet consumers have historically had to pay for both TV and the content they watch.

“That all changes today,” he said. “When I co-founded Pluto TV, we created an entirely new model that offered viewers amazing TV content for free. Now, with Telly, we are providing real television for free as well.”

consumer business

‘Tele will help streaming companies afford the content they need and want through an always-on advertising experience,’ said Elizabeth Parks, president and CEO of Parks Associates, a market research and consulting company in Edison, Texas.

“We forecast that the number of households using ad-supported streaming services will grow from approximately 37 million households in 2022 to 52 million in 2027, a compound annual growth rate of 6.7%,” he told TechNewsWorld.

Pozin estimates that TVs with the Tele’s specifications and capabilities are selling for US$1,000, although 4K TVs are selling for less. “Tele will be interesting for households that have limited budgets but are open to advertising,” said Brett Sappington, vice president at Interpret, a global consumer insights agency.

“Currently, users can buy an entry-level 55-inch, 4k smart TV for $300 to $400,” he told TechNewsWorld. “So, users will be considering the tradeoff of always-on advertising versus an advanced TV.”

Mark N., president and principal analyst at SmartTech Research in San Jose, Calif. “Tele is one of the more intriguing attempts to address the market of users who are willing to trade up their data in exchange for free TV,” Vena said. ,

“It could be attractive to a non-trivial number of users willing to make that commitment, as the TV is a 55-inch HDR model, priced at $600.”

‘Giant Leap Forward’

Richard Greenfield, general partner at Lightshade Ventures, the firm that co-led Tele’s latest funding round, calls Tele “a giant leap forward, taking advantage of the explosion of the connected TV advertising market and consumers’ desire for more control and interactivity.” does not”. Disrupt the TV watching experience.

“The unprecedented dual-screen design enables advertisers to completely re-imagine the living room experience, while offering consumers an incredible TV at an easy-to-use-yes-free price,” he said in a statement. “

Tele Smart Screen displays news, sports scores and advertisements

The tele smart screen displays information such as news, sports scores and weather updates, as well as advertisements running in a dedicated area on its right. (Image credit: Telly)

Parks said free ad-supported content is potentially the next point of difference between streaming services and their hardware platform partners.

“We expect this will also pave the way for more interactive advertising experiences and TV-based commerce experiences,” she said. “Our data shows that 50% of US Internet households are concerned that T-commerce will disrupt the programs they are watching. Moving ads to another screen may provide more T-commerce opportunities.”

Increasingly, streaming providers are tapping into interactive ads, said Ross Rubin, principal analyst at Reticle Research, a consumer technology advisory firm in New York City.

“They send you to a destination or let you scan a QR code to send information to your cell phone,” he told TechNewsWorld. “Tele may open up some new opportunities that weren’t ripe in the past.”

Rob Enderle, president and principal analyst at the Enderle Group, an advisory services firm in Bend, Ore., however, cautions that advertisers need to be in sync with their audience’s sensibilities. “Ads will need to be something users don’t mind seeing,” he told TechNewsWorld. “Otherwise, they are likely to be creative in finding ways not to see it.”

“People don’t like advertising,” he said. “Just putting them on a dedicated screen doesn’t fix it. You also need to look at the ad content to see if you can come up with a format that doesn’t detract from the content the user is viewing.” Not there.

volume issue

Sappington explained that consumers like free things, but their commitment to them may not be as strong as they are to things they pay for. “Some consumers can simply exit their tel if they don’t like it or get tired of the commercials,” he added. “Others may try to make a quick buck by reselling it on Facebook Marketplace or elsewhere.”

He said that giving away hardware to make money is not a new thing. For example, mobile carriers have given away cheap smartphones in order to take advantage of mobile data plans.

“The key is being able to generate enough ongoing revenue to make it profitable,” he continued. “That said, an ad-supported television is certainly new. Controlling the entire screen is a powerful position that companies have been competing to win for years.”

Park agreed. “It’s definitely a new model,” she said. “Advertising revenue is a significant part of the revenue mix of smart TV and streaming media player makers, but the business model has so far required in-device purchases.”

Rubin recalled a company in the late 1990s called Free PC that tried to subsidize free computers with advertising along the perimeter of the computer’s display.

He said, ‘The issue has become big. “They couldn’t reach enough audiences to attract enough advertising revenue to make the business viable.”

“It’s going to be one of the biggest challenges here as well,” he continued. “Demand side will not be an issue. There are a lot of people willing to take a chance on something that is free.”

“The question is on the supply side,” he said. “Can they make a convincing case for advertisers about the quality of their audience knowledge being the kind of investment they need to sustain the business model?”

Consumers can reserve free TV on the Tele website.

PCs and TVs received high scores from consumers in a report released Tuesday by the US Customer Satisfaction Index.

The ACSI Home Appliances and Electronics Study for 2021-2022, based on interviews with more than 9,000 consumers, rates a range of products on a scale of zero to 100.

Customer satisfaction with the TVs is “sky high,” ACSI noted in a news release, pulling the score down to 80.

“Television – and consumer electronics more broadly – has been one of the more satisfying industries measured at ACSI,” said ACSI Research Emeritus Forrest Morgesson.

“When you consider the never-ending wave of technological innovations being introduced into the industry, as well as the ever-decreasing prices for these goods – despite recent inflation – it is not hard to understand why, Morgeson, who is also an assistant professor of marketing at Michigan State University, told TechNewsWorld.

streaming satisfaction

It should come as no surprise that overall consumer satisfaction with TVs is so high, said Mark N. Venna, president and principal analyst at SmartTech Research in San Jose, Calif.

“For nearly a decade, TVs with embedded ‘smart’ interfaces have been gaining in overall share, allowing users to more easily and intuitively change settings, as well as content in an intuitive manner through an ‘app’ orientation. can reach,” he told TechNewsWorld. , “Consumer satisfaction is up as TVs get easier to use.”

Streaming programming has also contributed to consumer satisfaction with TV. “With TV streaming, they’ve become far more capable over time, and they’re relatively problem-free, in terms of devices,” said Rob Enderle, president and principal analyst at Enderle Group, an advisory services firm in Bend, Ore. .

“With streaming, TV is again the center of in-home entertainment, and people are pleased with improvements over time and not worried about premature obsolescence,” he told TechNewsWorld.

Desktop Outscore Laptop, Tablet

PCs, which include desktops, laptops and tablets, also scored higher on the index with 79. In form factor, desktops, at 80, scored higher than laptops and tablets, which both posted 79, although the tablet satisfaction number was three points. More in 2022 than in 2021.

“It’s little surprise that PCs recorded higher customer satisfaction than laptops and desktops,” Morgesson said. “Of course, it’s important to note that PCs have a much smaller market share than the other two, and there are different consumers of PCs who are looking for different features and functionality in their computers. These differ in needs. explains the large amount of difference in product types.”

Neither Vena nor Enderle, however, were surprised by consumer satisfaction with the desktop.

“Tablets and laptops are often used to penalize mobile settings that make them more prone to accidental damage,” explained Vena. “Due to their fixed nature, desktop PCs — especially all-in-one models — tend to have a stronger reliability assumption because they don’t move around.”

“Desktops generally don’t need to be carried around, the bigger the screen you can afford, the fewer connectivity issues there are, and there aren’t much battery life issues,” Enderle said.

Apple tops in popularity

Among PC makers, Apple had the highest customer satisfaction rating with 82, although Samsung came second with 81.

“Apple PCs have long been popular with their customers, and have often outperformed other PC makers,” Morgesson said.

“For many years,” he continued, “this popularity was driven by the niche market created by Apple, appealing to web and graphic designers. More recently, the strong popularity of the Apple iPhone, and with Apple’s PC Its seamless integration – like the MacBook – has attracted a broad set of customers who have come to really like the product.

US Customer Satisfaction Index: Home Appliances and Electronics Study for 2021-2022

Apple is a leader in overall consumer satisfaction because they control the total hardware and software “stack,” explained Vena.

“This allows Apple to manage the overall user experience in a very strict and cohesive manner, which is something Microsoft cannot do because it relies on an OEM model,” he said.

“Apple products ‘just work’ because they are not open, generally speaking, like Microsoft-based products from a third-party peripheral and device perspective,” he continued.

“Microsoft focuses more on backward compatibility with the tools that enterprise customers demand,” he said.

stellar customer service

Customer service is another way Apple attracts customers. “Apple has great service,” said Tim Bajarin, president of Creative Strategies, a technology consulting firm in Campbell, Calif.

“Over the past 20 years, they have developed a top-notch service model that includes physical service at Apple Stores and Genius Bars,” he told TechNewsWorld.

“When you have an issue with an Apple product, you know how to deal with it,” he continued. “It has a great online service for handling problems and if you are in a city with an Apple Store, you can make an appointment with Genius Bar and 90% of the time, this will help you take care of the problem.”

“It’s a really big difference for Apple,” he said. “None of the other companies have the same kind of network to handle customer service as Apple does.”

In contrast, surveyors found that satisfaction with Microsoft’s software dropped four points to 73.

“Microsoft offers its customers a wide range of very different software solutions, and so it’s hard to attribute their decline to any one software product,” Morgesson said.

“Nevertheless,” he continued, “the increasing availability of competing alternatives for many of their products – including low- or no-cost apps now available to consumers – is potentially influencing consumer perceptions with software offerings. “

LG is the leader in the domestic category

“Microsoft’s bread-and-butter apps like PowerPoint, Outlook, Word and Excel keep getting new features that create a notion of bloat that doesn’t necessarily mean ease of use,” Venna said.

Then there’s Windows 11. “Satisfaction usually goes down when new OSes come out because people don’t like to upgrade, even though the process has improved a lot over the years,” Enderle said.

Consumer satisfaction with the major home appliances in the survey – washer, dryer, dishwasher, refrigerator, oven and microwave – also rose one point year-on-year to 79. LG Corp led all companies in the domestic category, jumping three points to 81.

“Our performance in the 2022 ACSI Rankings indicates that LG is an innovative brand that delivers products and features with real consumer benefits, but more importantly, without sacrificing product quality,” said the CEO of Home Appliances Product Management. LG Vice President Brandt Warner said.

“As we continue to listen to the customer and prioritize their recommendations, the quality of our product remains our main focus so that consumers know that their LG device will offer excellent performance while meeting their needs, ‘ he told TechNewsWorld.