Telly, a company that offers televisions funded by advertising rather than direct sales, is encountering significant challenges in delivering its “free” TVs to consumers. Launched in May 2023, Telly’s dual-screen design features a primary 55-inch display and a secondary screen intended for advertisements, which operates even when the main screen is not in use. While the secondary screen can display useful information like weather updates or sports scores, its primary function is to serve as an advertising platform.
To obtain a Telly TV, users must complete a detailed survey, and they are unable to disable tracking or cover the secondary screen unless they opt to pay for the device, which Telly values at $1,000. Initially, Telly aimed to ship 500,000 units during the summer of 2023, with 250,000 registrations reported by June. However, a recent investor update revealed that as of late 2025, only 35,000 units had been successfully delivered to homes.
Shipping Issues and Customer Complaints
Despite the apparent interest in the product, Telly has faced significant shipping difficulties. According to the investor update, 10 percent of shipments were reported as damaged during transit with FedEx. The company has since switched to RXO, a logistics partner associated with Samsung, which has reportedly improved delivery conditions. Nevertheless, numerous online complaints indicate that many customers received defective units, highlighting the operational challenges faced by Telly.
Technical Difficulties and User Experience
In addition to shipping issues, Telly users have reported various technical problems. Complaints on dedicated subreddits suggest that the TVs may not meet user expectations, particularly regarding the reliance on an included streaming stick for app access and the intrusive nature of advertisements. Some users have noted repetitive ad displays, including irrelevant content in different languages.
Revenue Generation and Business Model Viability
Despite these challenges, Telly’s ad-based revenue model appears to be gaining traction. The company reported an annualized revenue of $22 million in Q3 2025, translating to approximately $52 per TV per month. This figure surpasses the average revenue per user reported by other budget TV brands like Roku and Vizio. Furthermore, Telly has secured $350 million in debt funding across two rounds, indicating investor confidence in its business model.
As the market for smart TVs continues to evolve, Telly’s approach of integrating advertisements and user tracking into its devices may represent a forward-thinking strategy, albeit with significant operational hurdles to overcome.
This article was produced by NeonPulse.today using human and AI-assisted editorial processes, based on publicly available information. Content may be edited for clarity and style.
