TVs

Why I’m disappointed with the TVs at CES 2025

AI, CES, CES 2025, generative ai, Google, lg, Microsoft Copilot, oled, samsung, Software, Tech, TVs / Kris Guyer / January 9, 2025

Won’t someone please think of the viewer?

Op-ed: TVs miss opportunity for real improvement by prioritizing corporate needs.

The TV industry is hitting users over the head with AI and other questionable gimmicks Credit: Getty

If you asked someone what they wanted from TVs released in 2025, I doubt they’d say “more software and AI.” Yet, if you look at what TV companies have planned for this year, which is being primarily promoted at the CES technology trade show in Las Vegas this week, software and AI are where much of the focus is.

The trend reveals the implications of TV brands increasingly viewing themselves as software rather than hardware companies, with their products being customer data rather than TV sets. This points to an alarming future for smart TVs, where even premium models sought after for top-end image quality and hardware capabilities are stuffed with unwanted gimmicks.

LG’s remote regression

LG has long made some of the best—and most expensive—TVs available. Its OLED lineup, in particular, has appealed to people who use their TVs to watch Blu-rays, enjoy HDR, and the like. However, some features that LG is introducing to high-end TVs this year seem to better serve LG’s business interests than those users’ needs.

Take the new remote. Formerly known as the Magic Remote, LG is calling the 2025 edition the AI Remote. That is already likely to dissuade people who are skeptical about AI marketing in products (research suggests there are many such people). But the more immediately frustrating part is that the new remote doesn’t have a dedicated button for switching input modes, as previous remotes from LG and countless other remotes do.

LG AI remote — LG’s AI Remote. Credit: Tom’s Guide/YouTube

To use the AI Remote to change the TV’s input—a common task for people using their sets to play video games, watch Blu-rays or DVDs, connect their PC, et cetera—you have to long-press the Home Hub button. Single-pressing that button brings up a dashboard of webOS (the operating system for LG TVs) apps. That functionality isn’t immediately apparent to someone picking up the remote for the first time and detracts from the remote’s convenience.

By overlooking other obviously helpful controls (play/pause, fast forward/rewind, and numbers) while including buttons dedicated to things like LG’s free ad-supported streaming TV (FAST) channels and Amazon Alexa, LG missed an opportunity to update its remote in a way centered on how people frequently use TVs. That said, it feels like user convenience didn’t drive this change. Instead, LG seems more focused on getting people to use webOS apps. LG can monetize app usage through, i.e., getting a cut of streaming subscription sign-ups, selling ads on webOS, and selling and leveraging user data.

Moving from hardware provider to software platform

LG, like many other TV OEMs, has been growing its ads and data business. Deals with data analytics firms like Nielsen give it more incentive to acquire customer data. Declining TV margins and rock-bottom prices from budget brands (like Vizio and Roku, which sometimes lose money on TV hardware sales and make up for the losses through ad sales and data collection) are also pushing LG’s software focus. In the case of the AI Remote, software prioritization comes at the cost of an oft-used hardware capability.

Further demonstrating its motives, in September 2023, LG announced intentions to “become a media and entertainment platform company” by offering “services” and a “collection of curated content in products, including LG OLED and LG QNED TVs.” At the time, the South Korean firm said it would invest 1 trillion KRW (about $737.7 million) into its webOS business through 2028.

Low TV margins, improved TV durability, market saturation, and broader economic challenges are all serious challenges for an electronics company like LG and have pushed LG to explore alternative ways to make money off of TVs. However, after paying four figures for TV sets, LG customers shouldn’t be further burdened to help LG accrue revenue.

Google TVs gear up for subscription-based features

There are numerous TV manufacturers, including Sony, TCL, and Philips, relying on Google software to power their TV sets. Numerous TVs announced at CES 2025 will come with what Google calls Gemini Enhanced Google Assistant. The idea that this is something that people using Google TVs have requested is somewhat contradicted by Google Assistant interactions with TVs thus far being “somewhat limited,” per a Lowpass report.

Nevertheless, these TVs are adding far-field microphones so that they can hear commands directed at the voice assistant. For the first time, the voice assistant will include Google’s generative AI chatbot, Gemini, this year—another feature that TV users don’t typically ask for. Despite the lack of demand and the privacy concerns associated with microphones that can pick up audio from far away even when the TV is off, companies are still loading 2025 TVs with far-field mics to support Gemini. Notably, these TVs will likely allow the mics to be disabled, like you can with other TVs using far-field mics. But I still ponder about features/hardware that could have been implemented instead.

Google is also working toward having people pay a subscription fee to use Gemini on their TVs, PCWorld reported.

“For us, our biggest goal is to create enough value that yes, you would be willing to pay for [Gemini],” Google TV VP and GM Shalini Govil-Pai told the publication.

The executive pointed to future capabilities for the Gemini-driven Google Assistant on TVs, including asking it to “suggest a movie like Jurassic Park but suitable for young children” or to show “Bollywood movies that are similar to Mission: Impossible.”

She also pointed to future features like showing weather, top news stories, and upcoming calendar events when someone is near the TV, showing AI-generated news briefings, and the ability to respond to questions like “explain the solar system to a third-grader” with text, audio, and YouTube videos.

But when people have desktops, laptops, tablets, and phones in their homes already, how helpful are these features truly? Govil-Pai admitted to PCWorld that “people are not used to” using their TVs this way “so it will take some time for them to adapt to it.” With this in mind, it seems odd for TV companies to implement new, more powerful microphones to support features that Google acknowledges aren’t in demand. I’m not saying that tech companies shouldn’t get ahead of the curve and offer groundbreaking features that users hadn’t considered might benefit them. But already planning to monetize those capabilities—with a subscription, no less—suggests a prioritization of corporate needs.

Samsung is hungry for AI

People who want to use their TV for cooking inspiration often turn to cooking shows or online cooking videos. However, Samsung wants people to use its TV software to identify dishes they want to try making.

During CES, Samsung announced Samsung Food for TVs. The feature leverages Samsung TVs’ AI processors to identify food displayed on the screen and recommend relevant recipes. Samsung introduced the capability in 2023 as an iOS and Android app after buying the app Whisk in 2019. As noted by TechCrunch, though, other AI tools for providing recipes based on food images are flawed.

So why bother with such a feature? You can get a taste of Samsung’s motivation from its CES-announced deal with Instacart that lets people order off Instacart from Samsung smart fridges that support the capability. Samsung Food on TVs can show users the progress of food orders placed via the Samsung Food mobile app on their TVs. Samsung Food can also create a shopping list for recipe ingredients based on what it knows (using cameras and AI) is in your (supporting) Samsung fridge. The feature also requires a Samsung account, which allows the company to gather more information on users.

Other software-centric features loaded into Samsung TVs this year include a dedicated AI button on the new TVs’ remotes, the ability to use gestures to control the TV but only if you’re wearing a Samsung Galaxy Watch, and AI Karaoke, which lets people sing karaoke using their TVs by stripping vocals from music playing and using their phone as a mic.

Like LG, Samsung has shown growing interest in ads and data collection. In May, for example, it expanded its automatic content recognition tech to track ad exposure on streaming services viewed on its TVs. It also has an ads analytics partnership with Experian.

Large language models on TVs

TVs are mainstream technology in most US homes. Generative AI chatbots, on the other hand, are emerging technology that many people have yet to try. Despite these disparities, LG and Samsung are incorporating Microsoft’s Copilot chatbot into 2025 TVs.

LG claims that Copilot will help its TVs “understand conversational context and uncover subtle user intentions,” adding: “Access to Microsoft Copilot further streamlines the process, allowing users to efficiently find and organize complex information using contextual cues. For an even smoother and more engaging experience, the AI chatbot proactively identifies potential user challenges and offers timely, effective solutions.”

Similarly, Samsung, which is also adding Copilot to some of its smart monitors, said in its announcement that Copilot will help with “personalized content recommendations.” Samsung has also said that Copilot will help its TVs understand strings of commands, like increasing the volume and changing the channel, CNET noted. Samsung said it intends to work with additional AI partners, namely Google, but it’s unclear why it needs multiple AI partners, especially when it hasn’t yet seen how people use large language models on their TVs.

TV-as-a-platform

To be clear, this isn’t a condemnation against new, unexpected TV features. This also isn’t a censure against new TV apps or the usage of AI in TVs.

AI marketing hype is real and misleading regarding the demand, benefits, and possibilities of AI in consumer gadgets. However, there are some cases when innovative software, including AI, can improve things that TV users not only care about but actually want or need. For example, some TVs use AI for things like trying to optimize sound, color, and/or brightness, including based on current environmental conditions or upscaling. This week, Samsung announced AI Live Translate for TVs. The feature is supposed to be able to translate foreign language closed captions in real time, providing a way for people to watch more international content. It’s a feature I didn’t ask for but can see being useful and changing how I use my TV.

But a lot of this week’s TV announcements underscore an alarming TV-as-a-platform trend where TV sets are sold as a way to infiltrate people’s homes so that apps, AI, and ads can be pushed onto viewers. Even high-end TVs are moving in this direction and amplifying features with questionable usefulness, effectiveness, and privacy considerations. Again, I can’t help but wonder what better innovations could have come out this year if more R&D was directed toward hardware and other improvements that are more immediately rewarding for users than karaoke with AI.

The TV industry is facing economic challenges, and, understandably, TV brands are seeking creative solutions for making money. But for consumers, that means paying for features that you’re likely to ignore. Ultimately, many people just want a TV with amazing image and sound quality. Finding that without having to sift through a bunch of fluff is getting harder.

Scharon is a Senior Technology Reporter at Ars Technica writing news, reviews, and analysis on consumer gadgets and services. She’s been reporting on technology for over 10 years, with bylines at Tom’s Hardware, Channelnomics, and CRN UK.

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Buying a TV in 2025? Expect lower prices, more ads, and an OS war.

ads, Features, Roku, Software, Tech, TVs, Vizio, walmart / Tim Belzer / December 16, 2024

“I do fear that the pressure to make better TVs will be lost…”

If you’re looking to buy a TV in 2025, you may be disappointed by the types of advancements TV brands will be prioritizing in the new year. While there’s an audience of enthusiasts interested in developments in tech like OLED, QDEL, and Micro LED, plus other features like transparency and improved audio, that doesn’t appear to be what the industry is focused on.

Today’s TV selection has a serious dependency on advertisements and user tracking. In 2025, we expect competition in the TV industry to center around TV operating systems (OSes) and TVs’ ability to deliver more relevant advertisements to viewers.

That yields a complicated question for shoppers: Are you willing to share your data with retail conglomerates and ad giants to save money on a TV?

Vizio is a Walmart brand now

One of the most impactful changes to the TV market next year will be Walmart owning Vizio. For Walmart, the deal, which closed on December 3 for approximately $2.3 billion, is about owning the data collection capabilities of Vizio’s SmartCast OS. For years, Vizio has been shifting its business from hardware sales to Platform+, “which consists largely of its advertising business” and “now accounts for all the company’s gross profit,” as Walmart noted when announcing the acquisition.

Walmart will use data collected from Vizio TVs to fuel its ad business, which sells ads on the OSes of its TVs (including Vizio and Onn brand TVs) and point-of-sale machines in Walmart stores. In a December 3 statement, Walmart confirmed its intentions with Vizio:

The acquisition… allows Walmart to serve its customers in new ways to enhance their shopping journeys. It will also bring to market new and differentiated ways for advertisers to meaningfully connect with customers at scale and boost product discovery, helping brands achieve greater impact from their advertising investments with Walmart Connect—the company’s retail media business in the US.

In 2025, buying a Vizio TV won’t just mean buying a TV from a company that’s essentially an ad business. It will mean fueling Walmart’s ad business. With Walmart also owning Onn and Amazon owning Fire TVs, that means there’s one less TV brand that isn’t a cog in a retail giant’s ever-expanding ad machine. With a history that includes complaints around working conditions and questionable products, including some that are straight scams, some people (including numerous Ars commenters) try to avoid commerce giants like Walmart and Amazon. In 2025, that will be harder for people looking for a new TV, especially an inexpensive one.

“Roku is at grave risk”

Further, Walmart has expressed a goal of becoming one of the 10 biggest ad companies, with the ad business notably having higher margins than groceries. It could use Vizio, via more plentiful and/or intrusive ads, to fuel those goals.

And Walmart’s TV market share is set to grow in the new year. Paul Gray, research director of consumer electronics and devices at Omdia, told Ars Technica he expects that “the new combined sales (Vizio plus Walmart’s white label) will be bigger than the current market leader Samsung.”

There are also potential implications related to how Walmart decides to distribute TVs post-acquisition. As Patrick Horner, practice leader of consumer electronics at Omdia, told Ars:

One of the possibilities is that Walmart could make use of the Vizio operating system a condition for placement in stores. This could change not only the Onn/Vizio TVs but may also include the Chinese brands. The [Korean] and Japanese brands may resist, as they have premium brand positioning, but the Chinese brands would be vulnerable. Roku is at grave risk.

Roku acquisition?

With Walmart set to challenge Roku, some analysts anticipate that Roku will be acquired in 2025. In December, Guggenheim analysts predicted that ad tech firm The Trade Desk, which is launching its own TV OS, will look to buy Roku to scale its OS business.

Needham & Company’s Laura Martin also thinks an acquisition—by The Trade Desk or possibly one of Walmart’s retail competitors—could be on the horizon.

‘’Walmart has told you by buying Vizio that these large retailers need a connected television advertising platform to tie purchases to,” Martin told Bloomberg. “That means Target and other large retailers have that reason to buy Roku to tie Roku’s connected television ad units to their sales in their retail stores. And by the way, Roku has much higher margins than any retailer.’”

She also pointed to Amazon as a potential buyer, noting that it might be able to use Roku’s user data to feed large language models.

Roku was already emboldened enough in 2024 to introduce home screen video ads to its TVs and streaming devices and has even explored technology for showing ads over anything plugged into a Roku set. Imagine how using Roku devices might further evolve if owned by a company like The Trade Desk or Amazon with deep interests in ads and tracking.

TV owners accustomed to being tracked

TV brands have become so dependent on ads that some are selling TVs at a loss to push ads. How did we get to the point where TV brands view their hardware as a way to track and sell to viewers? Part of the reason TV OSes are pushing the limits on ads is that many viewers seem willing to accept them, especially in the name of saving money.

Per the North American Q2 2024 TiVo Video Trends Report, 64.3 percent of subscription video-on-demand users subscribe to an ad-supported tier (compared to 48 percent in Q2 2023). And users are showing more tolerance to ads, with 77.8 percent saying they are “tolerant” or “in favor of” ads, up from 74 percent in Q2 2023. This is compared to 22.2 percent of respondents saying they’re “averse” to ads. TiVo surveyed 4,490 people in the US and Canada ages 18 and up for the report.

“Based on streaming services, many consumers see advertising as a small price to pay for lower cash costs,” Horner said.

The analyst added:

While some consumers will be sensitive to privacy issues or intrusive advertising, at the same time, most people have shown themselves entirely comfortable with being tracked by (for example) social media.

Alan Wolk, co-founder and lead analyst at the TVREV TV and streaming analyst group, agreed that platforms like Instagram have proven people’s willingness to accept ads and tracking, particularly if it leads to them seeing more relevant advertisements or giving shows or movies better ratings. According to the analyst, customers seem to think, “Google is tracking my finances, my porn habits, my everything. Why do I care if NBC knows that I watch football and The Tonight Show?”

While Ars readers may be more guarded about Google having an insider look at their data, many web users have a more accepting attitude. This has opened the door for TVs to test users’ max tolerance for ads and tracking to deliver more relevant ads.

That said, there’s a fine line.

“Companies have to be careful of… finding that line between taking in advertising, especially display ads on the home screen or whatnot, and it becoming overwhelming [for viewers],” Wolk said.

One of the fastest-growing ad vehicles for TVs currently and into 2025 is free, ad-supported streaming television (FAST) channels that come preloaded and make money from targeted ads. TCL is already experimenting with what viewers will accept here. It recently premiered movies made with generative AI that it hopes will fuel its FAST business while saving money. TCL believes that passive viewers will accept a lot of free content, even AI-generated movies and shows. But some viewers are extremely put off by such media, and there’s a risk of souring the reputation of some FAST services.

OS wars

We can expect more competition from TV OS operators in 2025, including from companies that traditionally have had no place in consumer hardware, like ad tech giant The Trade Desk. These firms face steep competition, though. Ultimately, the battle of TV OSes could end up driving improvements around usability, content recommendations, and, for better or worse, ad targeting.

Following heightened competition among TV OSes, Omdia’s Gray expects winners to start emerging, followed by consolidation.

“I expect that the final state will be a big winner, a couple of sizeable players, and some niche offerings,” he said.

Companies without backgrounds in consumer tech will have difficulty getting a foot into an already crowded market, which means we may not have to worry much about companies like The Trade Desk taking over our TVs.

“I have yet to meet a single person who hasn’t looked at me quizzically and said, ‘Wait, what are they thinking?’ Because the US market for the operating system is very tight,” Wolk said. “… So for American consumers, I don’t think we’ll see too many new entrants.”

You can also expect Comcast and Charter to push deeper into TV software as they deal with plummeting cable businesses. In November, they made a deal to put their joint venture’s TV OS, Xumo OS, in Hisense TVs that will be sold in Target. Xumo TVs are already available in almost 8,000 locations, Comcast and Charter said in November. The companies claimed that the retailers selling Xumo TVs “represent nearly 75 percent of all smart TV sales in the US.”

Meanwhile, Xperi Corp. said in November that it expected its TiVo OS to be in 2 million TVs by the end of 2024 and 7 million TVs by the end of 2025. At the heart of Tivo OS is TiVo One, which TiVo describes as a “cross-screen ad platform for new inventory combined with audience targeting and monetization” that is available in TVs and car displays. Announcing TiVo One in May, Xperi declared that the “advertising market is projected to reach [$36] billion” by 2026, meaning that “advertising on smart TVs has never been more imperative.”

But as competition intensifies and pushes the market into selecting a few “sizeable players,” as Gray put it, there’s more pressure for companies to make their OSes stand out to TV owners. This is due to advertising interests, but it also means more focus on making TVs easier to use and better able to help people find something to watch.

Not a lot of options

At the start of this article, we asked if you’d be willing to share your data with retail conglomerates and ad giants to save money on a TV. But the truth is there aren’t many alternative options beyond disconnecting your TV from the Internet or paying for an Apple TV streaming device in addition to your TV. Indeed, amid a war among OSes, many Ars readers will opt not to leverage ad-filled software at all. This shows a disconnect between TV makers and a core audience while suggesting limits in terms of new TV experiences next year.

Still, analysts agree that even among more expensive TV brands, there has been a shift toward building out ad businesses and OSes over improving hardware features like audio.

“This is a low-margin business, and even in the premium segment, the revenues from ads and data are significant. Also, the sort of consumer who buys a premium TV is likely to be especially interesting to advertisers,” Gray said.

Some worry about what this means for TV innovation. With software being at the center of TV businesses, there seems to be less incentive to drive hardware-related advancements. Gray echoed this sentiment while acknowledging that the current state of TVs is at least driving down TV prices.

“I do fear that the pressure to make better TVs will be lost and that matters such as… durability and performance risk being de-prioritized,” he said.

Vendors are largely leaving shoppers to drive improvements themselves, such as by buying additional gadgets like soundbars, Wolk noted.

In 2025, TVs will continue focusing innovation around software, which has immediate returns via ad sales compared to new hardware, which can take years to develop and catch on with shoppers. For some, this is creating a strong demand for dumb TVs, but unfortunately, there are no immediate signs of that becoming a trend.

As Horner put it, “This is an advertising/e-commerce-driven market, not a consumer-driven market. TV content is just the bait in the trap.”

Scharon is Ars Technica’s Senior Product Reviewer writing news, reviews, and analysis on consumer technology, including laptops, mechanical keyboards, and monitors. She’s based in Brooklyn.

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TCL TVs will use films made with generative AI to push targeted ads

ads, AI, culture, films, generative ai, movies, streaming, tcl, Tech, TVs / Kris Guyer / December 11, 2024

Advertising has become a focal point of TV software. We’re seeing companies that sell TV sets be increasingly interested in leveraging TV operating systems (OSes) for ads and tracking. This has led to bold new strategies, like an adtech firm launching a TV OS and ads on TV screensavers.

With new short films set to debut on its free streaming service tomorrow, TV-maker TCL is positing a new approach to monetizing TV owners and to film and TV production that sees reduced costs through reliance on generative AI and targeted ads.

TCL’s five short films are part of a company initiative to get people more accustomed to movies and TV shows made with generative AI. The movies will “be promoted and featured prominently on” TCL’s free ad-supported streaming television (FAST) service, TCLtv+, TCL announced in November. TCLtv+has hundreds of FAST channels and comes on TCL-brand TVs using various OSes, including Google TV and Roku OS.

Some of the movies have real actors. You may even recognize some, (like Kellita Smith, who played Bernie Mac’s wife, Wanda, on The Bernie Mac Show). Others feature characters made through generative AI. All the films use generative AI for special effects and/or animations and took 12 weeks to make, 404 Media, which attended a screening of the movies, reported today. AI tools used include ComfyUI, Nuke, and Runway, 404 reported. However, all of the TCL short movies were written, directed, and scored by real humans (again, including by people you may be familiar with). At the screening, Chris Regina, TCL’s chief content officer for North America, told attendees that “over 50 animators, editors, effects artists, professional researchers, [and] scientists” worked on the movies.

I’ve shared the movies below for you to judge for yourself, but as a spoiler, you can imagine the quality of short films made to promote a service that was created for targeted ads and that use generative AI for fast, affordable content creation. AI-generated videos are expected to improve, but it’s yet to be seen if a TV brand like TCL will commit to finding the best and most natural ways to use generative AI for video production. Currently, TCL’s movies demonstrate the limits of AI-generated video, such as odd background imagery and heavy use of narration that can distract from badly synced audio.

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An ad giant wants to run your next TV’s operating system

ads, Software, Sonos, Tech, TVs / Mike M. / November 21, 2024

Per The Trade Desk, Ventura’s other top “benefits” will include a “cleaner supply chain for streaming TV advertising, minimizing supply chain hops and costs—ensuring maximum ROI for every advertising dollar and optimized yield for publishers” and improved ad targeting.

TVs sold at a loss in order to bolster ad businesses

The Trade Desk plans to sell Ventura to TV manufacturers and distributors, plus other types of companies, like airlines, hotel chains, and “gaming companies,” Axios reported.

The ad tech firm says it isn’t looking to make money off of the OS directly and doesn’t plan to make hardware.

Instead, Ventura is supposed to benefit The Trade Desk by helping its advertiser customers reach more people. Differing from how TV owners traditionally view TV software’s purpose, Ventura will prioritize the ability to show TV owners the most appealing type of ads. Green will consider Ventura a success “if it drives more pricing transparency and stronger measurement for the CTV advertising ecosystem writ large,” per Axios.

Ventura has reportedly garnered interest from Sonos already, CEO Patrick Spence told Axios. Sonos is rumored to be developing a streaming set-top box. The audio company’s serious and public consideration of something like Ventura hints at the type of business approach it may take with streaming hardware.

The Trade Desk’s interest in creating a TV OS centered on being helpful to advertisers indicates how important ads have become to TVs and/or TV software companies. Some, like Vizio and Roku, have embraced this shift so much that they’re selling TVs “at somewhere between -3 and -7 percent margin” in a scramble to attract users, Paul Gray, Omdia’s research director of consumer electronics and devices, said at a CTV industry conference earlier this month, per Broadband TV News. Then there’s Telly, a startup that has given TVs away for free so it can sell and track ads. (Telly TVs also have a secondary screen that can show ads when the TV is off.)

As companies continue to leverage TV software to sell ads and gather user data, TV owners will likely continue seeing fewer options for an ad-free TV viewing experience.

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Smart TVs are like “a digital Trojan Horse” in people’s homes

ads, FCC, ftc, generative ai, Policy, streaming, Tech, TVs / Tim Belzer / October 7, 2024

Similarly, the report’s authors describe concerns that the CTV industry’s extensive data collection and tracking could potentially have a political impact. It asserts that political candidates could use such data to run “covert personalized campaigns” leveraging information on things like political orientations and “emotional states”:

With no transparency or oversight, these practices could unleash millions of personalized, manipulative and highly targeted political ads, spread disinformation, and further exacerbate the political polarization that threatens a healthy democratic culture in the US.

“Potential discriminatory impacts”

The CDD’s report claims that Black, Hispanic, and Asian-Americans in the US are being “singled out by marketers as highly lucrative targets,” due to fast adoption of new digital media services and brand loyalty. Black and Hispanic communities are key advertising targets for FAST channels, per the report. Chester told Ars:

There are major potential discriminatory impacts from CTV’s harvesting of data from communities of color.

He pointed to “growing widespread racial and ethnic data” collection for ad targeting and marketing.

“We believe this is sensitive information that should not be applied to the data profiles used for targeting on CTV and across other platforms. … Its use in political advertising on CTV will enable widespread disinformation and voter suppression campaigns targeting these communities,” Chester said.

Regulation

In a letter sent to the FTC, FCC, California attorney general, and CPPA , the CDD asked for an investigation into the US’ CTV industry, “including on antitrust, consumer protection, and privacy grounds.” The CDD emphasized the challenges that streamers—including those who pay for ad-free streaming—face in protecting their data from advertisers.

“Connected television has taken root and grown as an unregulated medium in the United States, along with the other platforms, devices, and applications that are part of the massive internet industry,” the report says.

The group asks for the FTC and FCC to investigate CTV practices and consider building on current legislation, like the 1988 Video Privacy Protection Act. They also request that antitrust regulators delve deeply into the business practices of CTV players like Amazon, Comcast, and Disney to help build “competition and diversity in the digital and connected TV marketplace.”

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LG TVs start showing ads on screensavers

ads, lg, Tech, TVs / Rejus Almole / September 25, 2024

Ad fatigue —

LG’s TV business is heightening focus on selling ads and tracking.

Scharon Harding – Sep 25, 2024 6: 01 pm UTC

LG's 2024 G4 OLED TV. — Enlarge / LG’s 2024 G4 OLED TV.

LG

Last month, Ars Technica went on a deep dive into the rapid growth of ads in TV software. Less than three weeks later, LG announced that it was adding advertisements to its TVs’ screensavers. The move embodies how ads are a growing and virtually inescapable part of the TV-viewing experience—even when you’re not watching anything.

As you might have expected, LG didn’t make a big, splashy announcement to consumers or LG TV owners about this new ad format. Instead, and ostensibly strategically, the September 5 announcement was made to advertisers. LG appears to know that screensaver ads aren’t a feature that excites users. Still, it and many other TV makers are happy to shove ads into the software of already-purchased devices.

LG TV owners may have already spotted the ads or learned about them via FlatpanelsHD, which today reported seeing a full-screen ad on the screensaver for LG’s latest flagship TV, the G4. “The ad appeared before the conventional screensaver kicks in,” per the website, “and was localized to the region the TV was set to.” (You can see images that FlatpanelsHD provided of the ads here, here, and here.) The reviewer reported seeing an ad for LG’s free ad-supported streaming channel, LG Channels, as well as third-party ads.

LG has put these ads on by default, according to FlatpanelsHD, but you can disable them in the TVs’ settings. Still, the introduction of ads during a screensaver, shown during a pause in TV viewing that some TVs use as an opportunity to show art or personal photos that amplify the space, illustrates the high priority that ad dollars and tracking have among today’s TVs—even new top-of-the-line ones.

According to LG’s ads arm, LG AD Solutions, the screensaver ads activate “across the home screen, LG Channels, and Content Store on LG smart TVs.” The point is to capitalize “on idle screen time, turning what may be perceived as a period of downtime into a valuable engagement opportunity.” LG AD Solutions claims that it has commissioned testing showing that screensaver ads drive “on average a 2.5 times higher lift in brand awareness.”

In a statement, LG AD Solutions CTO Dave Rudnick seemed to acknowledge that people whose TVs are showing screensavers are often trying to do something other than look at adverts.

“In the past, a screensaver ad might have indicated that viewers had left the room, but today’s viewing habits are markedly different,” he said. “Now, 93 percent of viewers multitask while watching TV, engaging in activities like messaging, shopping, browsing social media, or playing games on their phones.”

TV advertising: The next generation

The addition of screensaver ads that users can disable may sound like a comparatively smaller disruption as far as TV operating system (OS) ads go. But the incorporation of new ad formats into TV OSes’ various nooks and crannies is a slippery slope. Some TV brands are even centered more on ads than selling hardware. Unfortunately, it’s up to OS operators and TV OEMs to decide where the line is, including for already-purchased TVs. User and advertiser interests don’t always align, making TV streaming platforms without third-party ads, such as Apple TV, increasingly scarce gems.

LG has been expanding its business for selling and tracking ads shown on LG TVs. It has a partnership with Nielsen that sends automatic content-recognition data gathered from LG TVs to Nielsen, for example. Additionally, LG has boasted of plans to evolve from a hardware business into a “media and entertainment platform,” which includes selling ads. The South Korean company has also expressed strong interest in shopable TV ads.

For its part, LG’s growing ad interests have led it to launch a new LG Ad Solutions division this month that’s focused on developing new ways to show ads to and track smart TV users. In a statement, Rudnick said Innovation Labs is seeking to “push the boundaries” of smart-TV advertising and drive “next-generation advertising,” including interactive ads, on smart TVs.

LG is adapting to a changing market

LG claims to have done its homework before deciding to inject ads into its TVs’ screensavers. LG Ad Solutions-commissioned research, which was reportedly conducted and measured by Lucid, a consumer market research firm, found that screensaver ads increase brand awareness, especially among adults 45 and up and women with a household income greater than $80,000 (assumedly annually).

LG’s ads push comes as it’s challenged to continue finding revenue and growth from its TV business while TVs get more advanced and reliable and are able to get new features via software updates. Meanwhile, advertisers are challenged to find ways to continue reaching TV viewers in a world shifting from linear TV to streaming and web-based entertainment that’s often sold with the option of being commercial-free. Although lower-priced TVs, like those running Roku OS, may have a reputation for more ads, they’re also doing well in the market.

Market conditions and changing TV users’ habits are forcing LG to adapt the way it makes money from TVs. Unfortunately for those adverse to ads, that means pushing more commercials and finding better ways to track viewers.

LG TVs start showing ads on screensavers Read More »

“A total lump of… ”: Customer frustration as ISP’s smart TVs won’t turn on

Software, streaming, Tech, TVs, United Kindgom / Paul Patrick / September 20, 2024

Glass TVs —

Problems with UK Sky hardware started Thursday, seem partially fixed.

Scharon Harding – Sep 20, 2024 5: 29 pm UTC

Hundreds of owners of smart TVs and streaming devices from United Kingdom telecom Sky reported that their hardware stopped powering on Thursday. Sky hasn’t confirmed the cause of the problem, but a botched update is largely suspected.

Sky, a Comcast company that sells Internet, mobile, and satellite TV service in the UK, got into the streaming hardware business in 2021. Its proprietary Glass TVs and Stream pucks let people access TV channels offered through Sky via the Internet instead of a dish. As of this writing, Glass TVs range from 600 pounds (about $800) for a 43-inch set to 1,199 pounds (about $1,600) for 65 inches and include quantum dots and Dolby Vision, HDR10, and HLG HDR support. To order a Glass TV, people have to sign up for a Sky Entertainment subscription that includes the same type of channels offered through Sky’s satellite TV services but via streaming, plus Netflix (with or without ads). If you don’t buy/renew your Sky Entertainment subscription, “access to TV apps like Netflix won’t be available,” Sky says. The Stream puck, meanwhile, supports various streaming apps but doesn’t work without a Sky subscription.

As of yesterday, paying subscribers and owners of Glass and Stream devices reported that their devices were unable to power on. Users reported only being able to see a blank screen, with some saying the problems lasted for hours.

As noted by the BBC, problems started on Thursday night. Per Downdetector, the situation seemed to peak at around 3: 10 pm UTC with 377 incidents reported, but the overall number of affected devices could vary. A thread on Sky’s community forum about the problem is currently 141 pages long.

This morning, some people were still complaining about broken devices online; although, some reported that their devices were functioning again. As of this writing, DownDetector is showing 142 reported incidents.

With no TV to watch, Glass and Stream users had plenty of time to go online to try to troubleshoot with each other and share their disappointment in Sky. Some have called for Sky to pay for the cost of a new TV, while others are wondering if they will get financial compensation for their troubles. Sky hasn’t made any public mention of refunds or credits, though.

A user going by larky+marky on Sky’s community forum wrote:

What a total lump of st.

I have been thinking of cancelling my subscription altogether, so now this has made my mind up.

Yesterday, a Twitter user claimed that their TV was bricked “for the best part of 11 hours.” The user, going by MattHudson81, wrote, “We pay a lot of money each month for the use of your services and understand at times faults happen, but 11 hours so far with no end in sight, it’s not good.”

On Sky’s support forum, an employee said that Sky was working on the problem throughout Thursday night. “We continue to work on the problem in the background,” the employee going by KevNewMedia wrote today.

Sky also acknowledged the problems on Thursday via its Twitter account, saying:

Some Sky Glass/Stream customers are currently experiencing technical issues when trying to switch on their devices. Our technical teams are working hard to fix this. We’re sorry for any inconvenience caused.

Today, the Twitter account posted another apology along with a link to a support page with steps for getting the hardware to work (basically by resetting it). However, at least some people on Sky’s support forum have said that the fix hasn’t worked for them.

“Yet this isn’t working for everyone though. You’re essentially just tell[ing] people to turn it on and off again,” PaulRC1963 wrote. “Sky is acting very incompetent.”

Sky hasn’t confirmed the cause

Sky declined to answer questions from the BBC about the cause of the problems or when they’d be totally resolved. Without further explanation, a poorly executed software update issued via the Internet seems to be the most obvious reason for hundreds of people concurrently reporting broken devices.

The situation, which led to missed sporting events and hours of boredom, is a reminder of the risks of buying hardware from companies, like ISPs, that aren’t traditionally in the technology game. Sky first unveiled its Glass TVs in 2021, ostensibly as an attempt to save its business amid a massive shift to streaming over satellite dishes and cable and to drive subscription revenue. It’s possible that in its haste to jump on the streaming bandwagon, it has overlooked some of the intricacies and complexities in mass, web-issued updates. Notably, Sky’s set-top boxes have reportedly been unaffected.

If a botched update didn’t break the smart TVs and streaming sticks, it would be prudent of Sky to inform customers of the root of the problem. Otherwise, it can be hard for customers to have confidence that the problems won’t repeat and that their subscriptions and Sky hardware are worthwhile.

“A total lump of… ”: Customer frustration as ISP’s smart TVs won’t turn on Read More »

Amazon “tricks” customers into buying Fire TVs with false sales prices: Lawsuit

Amazon, fire tv, Policy, Tech, TVs / Mike M. / September 18, 2024

Fire TV pricing under fire —

Lawsuit claims list prices only available for “extremely short period” sometimes.

Scharon Harding – Sep 18, 2024 5: 16 pm UTC

A promotional image for Amazon's 4-Series Fire TVs. — Enlarge / A promotional image for Amazon’s 4-Series Fire TVs.

A lawsuit is seeking to penalize Amazon for allegedly providing “fake list prices and purported discounts” to mislead people into buying Fire TVs.

As reported by Seattle news organization KIRO 7, a lawsuit seeking class-action certification and filed in US District Court for the Western District of Washington on September 12 [PDF] claims that Amazon has been listing Fire TV and Fire TV bundles with “List Prices” that are higher than what the TVs have recently sold for, thus creating “misleading representation that customers are getting a ‘Limited time deal.'” The lawsuit accuses Amazon of violating Washington’s Consumer Protection Act.

The plaintiff, David Ramirez, reportedly bought a 50-inch 4-Series Fire TV in February for $299.99. The lawsuit claims the price was listed as 33 percent off and a “Limited time deal” and that Amazon “advertised a List Price of $449.99, with the $449.99 in strikethrough text.” As of this writing, the 50-inch 4-Series 4K TV on Amazon is marked as having a “Limited time deal” of $299.98.

Enlarge / A screenshot from Amazon taken today.

Camelcamelcamel, which tracks Amazon prices, claims that the cheapest price of the TV on Amazon was $280 in July. The website also claims that the TV’s average price is $330.59; the $300 or better deal seems to have been available on dates in August, September, October, November, and December of 2023, as well as in July, August, and September 2024. The TV was most recently sold at the $449.99 “List Price” in October 2023 and for short periods in July and August 2024, per Camelcamelcamel.

The 50-inch 4-Series Fire TV's Amazon price history, according to Camelcamelcamel. — Enlarge / The 50-inch 4-Series Fire TV’s Amazon price history, according to Camelcamelcamel.

Amazon’s website has an information icon next to “List Prices” that, when hovered over, shows a message stating: “The List Price is the suggested retail price of a new product as provided by a manufacturer, supplier, or seller. Except for books, Amazon will display a List Price if the product was purchased by customers on Amazon or offered by other retailers at or above the List Price in at least the past 90 days. List prices may not necessarily reflect the product’s prevailing market price.”

The lawsuit against Amazon alleges that Amazon is claiming items were sold at their stated List Price within 90 days but were not:

… this representation is false and misleading, and Amazon knows it. Each of the Fire TVs in this action was sold with advertised List Price that were not sold by Amazon at or above those prices in more than 90 days, making the above statement, as well as the sales prices and percentage discounts, false and misleading. As of September 10, 2024, most of the Fire TVs were not sold at the advertised List Prices since 2023 but were instead consistently sold well below (often hundreds of dollars below) the List Prices during the class period.

When contacted by Ars Technica, an Amazon spokesperson said that the company doesn’t comment on ongoing litigation.

The lawsuit seeks compensatory and punitive damages and an injunction against Amazon.

“Amazon tricks its customers”

The lawsuit claims that “misleading” List Prices harm customers while also allowing Amazon to create a “false” sense of urgency to get a discount. The lawsuit alleges that Amazon has used misleading practices for 15 Fire TV models/bundles.

The lawsuit claims that in some cases, the List Price was only available for “an extremely short period, in some instances as short as literally one day.“

The suit reads:

Amazon tricks its customers into buying Fire TVs by making them believe they are buying Fire TVs at steep discounts. Amazon omits critical information concerning how long putative “sales” would last, and when the List Prices were actually in use, which Plaintiff and class members relied on to their detriment. Amazon’s customers spent more money than they otherwise would have if not for the purported time-limited bargains.

Further, Amazon is accused of using these List Price tactics to “artificially” drive Fire TV demand, putting “upward pressure on the prices that” Amazon can charge for the smart TVs.

The legal document points to a similar 2021 case in California [PDF], where Amazon was sued for allegedly deceptive reference prices. It agreed to pay $2 million in penalties and restitution.

Other companies selling electronics have also been scrutinized for allegedly making products seem like they typically and/or recently have sold for more money. For example, Dell Australia received an AUD $10 million fine (about $6.49 million) for “making false and misleading representations on its website about discount prices for add-on computer monitors,” per the Australian Competition & Consumer Commission.

Now’s a good time to remind friends and family who frequently buy tech products online to use price checkers like Camelcamelcamel and PCPartPicker to compare products with similar specs and features across different retailers.

Amazon “tricks” customers into buying Fire TVs with false sales prices: Lawsuit Read More »

TCL accused of selling quantum dot TVs without actual quantum dots

tcl, Tech, TVs / Mike M. / September 17, 2024

Many playing video games on TCL C655 Pro — Enlarge / TCL’s C655 Pro TV is advertised as a quantum dot Mini LED TV.

TCL has come under scrutiny this month after testing that claimed to examine three TCL TVs marketed as quantum dot TVs reportedly showed no trace of quantum dots.

Quantum dots are semiconductor particles that are several nanometers large and emit different color lights when struck with light of a certain frequency. The color of the light emitted by the quantum dot depends on the wavelength, which is impacted by the quantum dot’s size. Some premium TVs (and computer monitors) use quantum dots so they can display a wider range of colors.

Quantum dots have become a large selling point for LCD-LED, Mini LED, and QD-OLED TVs, and quantum dot TVs command higher prices. A TV manufacturer pushing off standard TVs as quantum dot TVs would create a scandal significant enough to break consumer trust in China’s biggest TV manufacturer and could also result in legal ramifications.

But with TCL sharing conflicting testing results, and general skepticism around TCL being able to pull off such an anti-consumer scam in a way that would benefit it financially, this case of questionable colorful TVs isn’t so black and white. So, Ars Technica sought more clarity on the situation.

Tests unable to detect quantum dots in TCL TVs

Earlier this month, South Korean IT news publication ETNews published a report on testing that seemingly showed three TCL quantum dot TVs, marketed as QD TVs, as not having quantum dots present.

Hansol Chemical, a Seoul-headquartered chemicals company, commissioned the testing. SGS, a Geneva-headquartered testing and certification company, and Intertek, a London-headquartered testing and certification company, performed the tests.

The models examined were TCL’s C755, said to be a quantum dot Mini LED TV, the C655, a purported quantum dot LED (QLED) TV, and the C655 Pro, another QLED. None of those models are sold in the US, but TCL sells various Mini LED and LED TVs in the US that claim to use quantum dots.

According to a Google translation, ETNews reported: “According to industry sources on the 5th, the results of tests commissioned by Hansol Chemical to global testing and certification agencies SGS and Intertek showed that indium… and cadmium… were not detected in three TCL QD TV models. Indium and cadmium are essential materials that cannot be omitted in QD implementation.”

The testing was supposed to detect cadmium if present at a minimum concentration of 0.5 mg per 1 kg, while indium was tested at a minimum detection standard of 2 mg/kg or 5 mg/kg, depending on the testing lab.

These are the results from Intertek and SGS’s testing, as reported by display tech publication Display Daily:

Testing Lab	TCL Model	Measured	Indium	Cadmium	Indium Minimum Detection Standard (mg/kg)	Cadmium Minimum Detection Standard (mg/kg)
Intertek	C755	Sheet	Undetected	Undetected	2 mg/kg	0.5 mg/kg
Intertek	C655	Diffusion Plate	Undetected	Undetected	2 mg/kg	0.5 mg/kg
SGS	C655 Pro	Sheet	Undetected	Undetected	5 mg/kg	0.5 mg/kg
SGS	C655 Pro	Diffusion Plate	Undetected	Undetected	5 mg/kg	0.5 mg/kg
SGS	C655 Pro	Sheet	Undetected	Undetected	5 mg/kg	0.5 mg/kg

TCL accused of selling quantum dot TVs without actual quantum dots Read More »

Samsung TVs will get 7 years of updates, starting with 2023 models

samsung, Software, Tech, TVs / Paul Patrick / August 26, 2024

Tizen OS —

Some Rokus and Apple TVs receive longer update windows, though.

Scharon Harding – Aug 26, 2024 9: 36 pm UTC

Enlarge / A Samsung representative demonstrating Tizen OS in February.

Samsung

Samsung will provide operating system updates for its newer TVs for at least seven years, the company announced last week. The updates will first apply to some TVs released in 2023 and TVs released in March 2024.

According to Business Korea, Samsung made the announcement regarding the Tizen OS at the Digital Research Lab of Samsung Electronics’ Suwon Campus in Gyeonggi Province. As spotted by FlatPanelsHD, the announcement follows previously announced plans from Samsung to provide seven years of software updates for the Galaxy S24 smartphone series.

Per Korea Economic Daily, speaking at last week’s event, Samsung Electronics’ president of the Visual Display Business Division, Yoon Seok-Yoon, said: “With the seven-year free upgrade of Tizen applied to AI TVs, we will widen the gap in market share with Chinese companies.”

Samsung is the biggest smart TV seller in the world, but rival companies from China are close behind. According to numbers from Omdia, Samsung’s TV market share (based on units shipped) declined from 20.3 percent in Q1 2023 to 18.8 percent in Q1 2024. Market share for Chinese brand TCL, meanwhile, increased from 9.8 percent to 11.6 percent (LG’s market share was about flat at 11.8 percent in Q1 2024).

Market competition has gotten so fierce that the South Korean government reportedly pushed rivals Samsung and LG to cooperate so that they could stay competitive. This has resulted in Samsung selling TVs that use OLED panels made by LG Display.

Samsung hasn’t provided a specific list of each model guaranteed to receive seven years of updates. However, the company’s announcement suggests the news will apply to TVs with AI-based features that came out in the aforementioned release window. (Samsung has been pushing the term “AI TVs” lately and also says building AI features is also a way for it to compete against Chinese brands.)

A step in the right direction

Samsung’s upgrades commitment comes amid growing concern about e-waste and expensive products suddenly no longer getting software updates, resulting in bricked, slowly operating, or buggy experiences.

Research suggests that the average TV lasts about seven years. However, as UK consumer advocacy group Which? has found, the average TV brand offers software updates for less than seven years. With Samsung being the world’s biggest TV brand, offering longer-term software support could encourage more in the industry to do the same. It could also help users keep their devices for longer. Samsung’s seven-year commitment is longer than what LG recently announced it would offer, which is four OS updates over five years (you can see LG’s webOS update plan here).

However, other TV hardware companies are doing better. Apple has provided updates for its first Apple TV since 2015, FlatPanelsHD pointed out, while Roku’s still providing OS updates to Roku OS-based TVs released in 2014. However, in general, TV OEMs and streaming device makers could make it easier for prospective buyers to know how long a device will continue getting software updates before they buy it.

Samsung TVs will get 7 years of updates, starting with 2023 models Read More »

Your TV set has become a digital billboard. And it’s only getting worse.

ads, Amazon, Features, fire tv, lg, Roku, samsung, Tech, TVs / Paul Patrick / August 19, 2024

The TV business isn’t just about selling TVs anymore. Companies are increasingly seeing viewers, not TV sets, as their most lucrative asset.

Over the past few years, TV makers have seen rising financial success from TV operating systems that can show viewers ads and analyze their responses. Rather than selling as many TVs as possible, brands like LG, Samsung, Roku, and Vizio are increasingly, if not primarily, seeking recurring revenue from already-sold TVs via ad sales and tracking.

How did we get here? And what implications does an ad- and data-obsessed industry have for the future of TVs and the people watching them?

The value of software

Success in the TV industry used to mean selling as many TV sets as possible. But with smart TVs becoming mainstream and hardware margins falling, OEMs have sought new ways to make money. TV OS providers can access a more frequent revenue source at higher margins, which has led to a viewing experience loaded with ads. They can be served from the moment you pick up your remote, which may feature streaming service ads in the form of physical buttons.

Some TV brands already prioritize data collection and the ability to sell ads, and most are trying to boost their appeal to advertisers. Smart TV OSes have become the cash cow of the TV business, with providers generating revenue by licensing the software and through revenue sharing of in-app purchases and subscriptions.

A huge part of TV OS revenue comes from selling ads, including on the OS’s home screen and screensaver and through free, ad-supported streaming television channels. GroupM, the world’s largest media investment company, reported that smart TV ad revenue grew 20 percent from 2023 to 2024 and will grow another 20 percent to reach $46 billion next year. In September 2023, Patrick Horner, practice leader of consumer electronics at analyst Omdia, reported that “each new connected TV platform user generates around $5 per quarter in data and advertising revenue.”

Automatic content recognition (ACR) tech is at the heart of the smart TV ads business. Most TV brands say users can opt out of ACR, but we’ve already seen Vizio take advantage of the feature without user permission. ACR is also sometimes turned on by default, and the off switch is often buried in a settings menu. Including ACR on a TV at all says a lot about a TV maker’s priorities. Most users have almost nothing to gain from ACR and face privacy concerns by sharing information—sometimes in real time—about what they do with their TVs.

At this point, consumers have come to expect ads and tracking on budget TVs from names like Vizio or Roku. But the biggest companies in TV are working on turning their sets into data-prolific billboards, too.

When TVs watch you back, so do corporations

In recent years, we’ve seen companies like LG and Samsung increase their TVs’ ad capabilities as advertisers become more eager to access tracking data from TVs.

LG, for example, started sharing data gathered from its TVs with Nielsen, giving the data and market measurement firm “the largest ACR data footprint in the industry,” according to an October announcement. The deal gives Nielsen streaming and linear TV data from LG TVs and provides firms buying ads on LG TVs with “‘Always On’ streaming measurement and big data from LG Ad Solutions” via Nielsen’s ONE Ads dashboard.

LG, which recently unveiled a goal of evolving its hardware business into an ad-pushing “media and entertainment platform company,” expects there to be 300 million webOS TVs in homes by 2026. That represents a huge data-collection and recurring-revenue opportunity. In September, LG said it would invest 1 trillion KRW (about $737.7 million) through 2028 into its “webOS business,” or the business behind its smart TV OS. The company said updates will include improving webOS’s UI, AI-based recommendations, and search capabilities.

Similarly, Samsung recently updated its ACR tech to track exposure to ads viewed on its TVs via streaming services instead of just from linear TV. Samsung is also trying to make its ACR data more valuable for ad targeting, including through a deal signed in December with analytics firm Experian.

Representatives for LG and Samsung declined to comment to Ars Technica about how much of their respective company’s business is ad sales. But the deals they’ve made with data-collection firms signal big interest in turning their products into lucrative smart TVs. In this case, “smart” isn’t about Internet connectivity but rather how well the TV understands its viewer.

Your TV set has become a digital billboard. And it’s only getting worse. Read More »

Roku OS home screen is getting video ads for the first time

ads, Roku, streaming, Tech, TVs / Paul Patrick / April 30, 2024

the price of cheap streaming —

Meanwhile, Roku keeps making more money.

Scharon Harding – Apr 29, 2024 9: 08 pm UTC

Roku CEO Anthony Wood disclosed plans to introduce video ads to the Roku OS home screen. The news highlights Roku’s growing focus on advertising and an alarming trend in the streaming industry that sees ads increasingly forced on viewers.

As spotted by The Streamable, during Roku’s Q1 2024 earnings call last week, Wood, also the company’s founder and chairman, boasted about the Roku OS home screen showing users ads “before they select an app,” avoiding the possibility that they don’t see any ads during their TV-viewing session. (The user might only use Roku to access a video streaming app for which they have an ad-free subscription.)

Wood also noted future plans to make the Roku home screen even more ad-laden:

On the home screen today, there’s the premier video app we call the marquee ad and that ad traditionally has been a static ad. We’re going to add video to that ad. So that’ll be the first video ad that we add to the home screen. That will be a big change for us.

Wood’s comments didn’t address the expected impact on the Roku user experience or whether the company thinks this might turn people off its platform. In December, Amazon made a similar move by adding autoplay video ads to the home screen of the Fire OS (which third-party TVs and Amazon-branded Fire TV sets and streaming devices use). Fire OS users who disable the ads’ autoplay function will still see ads as “a full-screen slide show of image ads,” per AFTVnews. Some users viewed the introduction as an intrusive step that went too far, and Roku may hear the same feedback.

During Roku’s earnings call, Wood also said the company is testing “other types of video ad units” and is looking for more ways to bring advertising to the Roku OS home screen.

This comes after recent efforts to expand ad presence on Roku OS, including through new FAST (free ad-supported streaming TV) channels and by putting content recommendations on the home screen for the first time, per Wood, who said the personalized content row “will be, obviously, AI-driven recommendations.”

“There’s lots of ways we’re working on enhancing the home screen to make it more valuable to viewers but also increase the monetization on the home screen,” he said.

Roku’s revenue rise

Roku saw its average revenue per user (ARPU) drop from $41.03 in Q3 of its 2023 financial year to $39.92 in Q4 2023 (in Q4 2022, the company reported an ARPU of $41.68). Last week, Roku reported that ARPU, a key metric for the streaming industry these days, rose to $40.65 in Q1 2024. Meanwhile, Roku’s active account count rose by 1.6 million users from the prior quarter to 81.6 million.

“Roku has a direct relationship with more than 81 million Streaming Households, and we are deepening relationships with third-party platforms, including [demand side platforms], retail media networks, and measurement partners. Our business remains well positioned to capture the billions of dollars in traditional TV ad budgets that will shift to streaming,” an April 25 letter to shareholders [PDF] authored by Wood and Roku CFO Dan Jedda reads.

Like many streaming companies, a shift toward ads has resulted in higher revenue potential and user discontent. In its Q1 2024 results, Roku reported that revenue for its Devices business reached $126.5 million, compared to $754.9 for its Platform business, which drives most of its revenue through ad sales, representing a 19 percent year-over-year (YoY) increase. Overall, revenue rose 19 percent YoY to $882 million, and Roku’s gross profit grew 15 percent YoY to $388 million.

But growing revenue doesn’t equate to an improved user experience. For example, an Accenture survey of 6,000 “global consumers” noted by The Streamable found that 52.2 percent of participants thought that streaming platform-recommended content “did not match their interests.” Similarly, an October TiVo survey of 4,500 viewers in the US and Canada ranked “streaming apps / home screen / carousel ads” as the fourth most popular method of content discovery, after word of mouth, commercials aired during other shows, and social media. While Roku is a budget brand associated with more affordable TVs and streaming devices, excessive ads could make people reconsider the true price of these savings.

Despite people’s ad aversion, Roku intends to find more ways to drive advertising opportunities. Among those ideas being explored is the ability to show ads over anything plugged into the TV.

Roku OS home screen is getting video ads for the first time Read More »