A quick check online says that Samsung–which has about 25% of the global market–sold at least 1M OLED televisions and 8.3M QLED televisions in 2023. So, let’s say that they sell 9.5M televisions annually (I’m not sure if the numbers are global or US-only); that’s $190M in pure profit from advertising alone. For a billion-dollar plus corporation, that might seem small, but it’s certainly enough to get them to take notice.
Experian has a program where you connect your bank account and they monitor transactions for things that could improve your credit by a couple points. I’m sure they’re not also harvesting the rest of your data to use in their analytics, right?
That deserves to be its own headline. Something like “consumer electronics companies now conspiring with credit rating companies to surveil the public even more invasively.”
It’s even better for them: those $190M are per-year for the lifetime of that TV.
So if for simplification we said they also sold 9.5M TVs in 2021 and again in 2022, in the year of 2024 the will be making $570M from the TVs they sold in 2021, 2022 and 2023.
If Samsung TVs are used in average for 10 years, in 2033 they will still be making money from TVs sold in 2024 and all the years in between. If their rate of sales remains 9.5M per year and how much they generate per quarter in data and advertising revenue from those TVs remains $5 (true, all big simplifications), by 2033 they will be making $1.90 BILLIONS from just this in addition to what they make from selling TVs.
No wonder they’re full in on this monetization of users even whilst making user experience significantly worse - they would need to lose a huge number of sales due to this for it to not be worth it for them.
That was the sentence that stuck out to me the most in the whole article as well. Incredible how much is lost for so little. I imagine it’s like drug dealers though, maybe $5 for the first seller, then gets chopped up and cut again and sold for less and chopped up again…
My question is, what are the alternatives? Other than finder older TVs without so much junkware and spyware, Are there open OS ROMs that can be loaded? Cracked firmware or debloated ROMs? I was very into Android’s launch 15 years ago and rode a train of options away from terrible stock ROMs from various OEMs; eventually privacy and simplicity becomes a selling point for OS after companies get through enshittifying it.
My question is, what are the alternatives? Other than finder older TVs without so much junkware and spyware, Are there open OS ROMs that can be loaded? Cracked firmware or debloated ROMs? I was very into Android’s launch 15 years ago and rode a train of options away from terrible stock ROMs from various OEMs; eventually privacy and simplicity becomes a selling point for OS after companies get through enshittifying it.
They should, but they won’t. Between Torvalds’ (wrong) opinion and the logistical issues of getting approval from all the other copyright holders, the Linux kernel will remain vulnerable to tivoization in perpetuity.
“commercial display” is a worth while route to explore. They do cover a wider range of image quality and features, so it does take paying close attention to specifications.
Be cautious with the commercial display route. A lot of them come with “management system” software the company is trying to push which can paywall control features or break things on you if they get online for firmware updates.
In general though they do make good displays: they are typically a lot more expensive (and heavy!)
If a company could pay $5 a customer for a competitive edge in customer satisfaction over their competitors, they would. Either they are getting way more than that or there is some cartel/monopoly action going on in the market. Maybe they are playing the long game to introduce an ad free model at a premium.
Still don’t see how nobody is undercutting existing players with ad free, smart tvs.
In a made up scenario let’s start with a dumb 50"ish TV. That cost them around $100 to build. Add in another $50 for shipping and distribution fees. It’s at the store for $150 cost. If they set the price at $400. There is $250 dollars of profit to share between the store and the manufacturer. The manufactuerer likely gets under $100.
Now for a smart TV the revenue stream looks different. First their costs only go up by a few dollars for adding the “smart” chips. So let’s say $155 cost. Then they collect revenue from the streaming providers to be supported by their smart TV say $30 per set. Then they collect the $20 per set per year in user data collected. So if they price the smart TV the same as the dumb one they generate $95 from the sale of the set.
So the profit from a dumb TV is $100 at he point of sale.
The profit from a smart TV is $225+ in a constant revenue stream over 5 years.
And this is why we see so much advertising for smart TV’s as being the best thing.
Fuck me, this is the amount of money that’s enough motivation for them to ruin my experience and make me angry?
I guess regular users have much higher tolerance to ads than me, but our home has a strict zero ad policy.
A quick check online says that Samsung–which has about 25% of the global market–sold at least 1M OLED televisions and 8.3M QLED televisions in 2023. So, let’s say that they sell 9.5M televisions annually (I’m not sure if the numbers are global or US-only); that’s $190M in pure profit from advertising alone. For a billion-dollar plus corporation, that might seem small, but it’s certainly enough to get them to take notice.
This should add to their profits.
Experian, the
social credit scorecredit rating company? FuuuuuckExperian has a program where you connect your bank account and they monitor transactions for things that could improve your credit by a couple points. I’m sure they’re not also harvesting the rest of your data to use in their analytics, right?
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My jaw dropped when I saw that. Not sure how many people are aware if it.
That deserves to be its own headline. Something like “consumer electronics companies now conspiring with credit rating companies to surveil the public even more invasively.”
It’s even better for them: those $190M are per-year for the lifetime of that TV.
So if for simplification we said they also sold 9.5M TVs in 2021 and again in 2022, in the year of 2024 the will be making $570M from the TVs they sold in 2021, 2022 and 2023.
If Samsung TVs are used in average for 10 years, in 2033 they will still be making money from TVs sold in 2024 and all the years in between. If their rate of sales remains 9.5M per year and how much they generate per quarter in data and advertising revenue from those TVs remains $5 (true, all big simplifications), by 2033 they will be making $1.90 BILLIONS from just this in addition to what they make from selling TVs.
No wonder they’re full in on this monetization of users even whilst making user experience significantly worse - they would need to lose a huge number of sales due to this for it to not be worth it for them.
That’s just 1 year’s sales. If the TV lasts 5 years it’s raking in 5 times the data. 190M x 5 = 950M/year, and 5 seems conservative.
Good point.
I’ve heard somewhere else that it’s a 50/50 split between the TV sales and ad revenue
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That was the sentence that stuck out to me the most in the whole article as well. Incredible how much is lost for so little. I imagine it’s like drug dealers though, maybe $5 for the first seller, then gets chopped up and cut again and sold for less and chopped up again…
My question is, what are the alternatives? Other than finder older TVs without so much junkware and spyware, Are there open OS ROMs that can be loaded? Cracked firmware or debloated ROMs? I was very into Android’s launch 15 years ago and rode a train of options away from terrible stock ROMs from various OEMs; eventually privacy and simplicity becomes a selling point for OS after companies get through enshittifying it.
I’d like for us all to stop for a moment and appreciate just how thoroughly and comprehensively fucked up it is that Linux, which is what all these TVs are running and which is supposed to be Free Software (which exists for the express purpose of empowering the user’s right to control his device), has been subverted so goddamn badly!
Wow had no idea TVs ran on Linux. They should pull the license.
They should, but they won’t. Between Torvalds’ (wrong) opinion and the logistical issues of getting approval from all the other copyright holders, the Linux kernel will remain vulnerable to tivoization in perpetuity.
“commercial display” is a worth while route to explore. They do cover a wider range of image quality and features, so it does take paying close attention to specifications.
Be cautious with the commercial display route. A lot of them come with “management system” software the company is trying to push which can paywall control features or break things on you if they get online for firmware updates.
In general though they do make good displays: they are typically a lot more expensive (and heavy!)
If a company could pay $5 a customer for a competitive edge in customer satisfaction over their competitors, they would. Either they are getting way more than that or there is some cartel/monopoly action going on in the market. Maybe they are playing the long game to introduce an ad free model at a premium.
Still don’t see how nobody is undercutting existing players with ad free, smart tvs.
Why is basic math.
In a made up scenario let’s start with a dumb 50"ish TV. That cost them around $100 to build. Add in another $50 for shipping and distribution fees. It’s at the store for $150 cost. If they set the price at $400. There is $250 dollars of profit to share between the store and the manufacturer. The manufactuerer likely gets under $100.
Now for a smart TV the revenue stream looks different. First their costs only go up by a few dollars for adding the “smart” chips. So let’s say $155 cost. Then they collect revenue from the streaming providers to be supported by their smart TV say $30 per set. Then they collect the $20 per set per year in user data collected. So if they price the smart TV the same as the dumb one they generate $95 from the sale of the set.
So the profit from a dumb TV is $100 at he point of sale.
The profit from a smart TV is $225+ in a constant revenue stream over 5 years.
And this is why we see so much advertising for smart TV’s as being the best thing.
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