Telly, the innovative hardware startup that offers free dual-screen smart TVs supported by advertising, has commenced shipping its first batch of TVs to its initial round of customers. The company's unique business model allows customers to obtain a 55-inch 4K TV without charge in exchange for viewing targeted advertisements on a smaller second screen located below the main display. While the number of shipped TVs remains undisclosed, Telly aims to deliver 500,000 units by the end of the year.

"Telly's unique business model and technology will completely transform TV measurement," Bob Ivins, Telly's head of data strategy, said in a blog post on Thursday. "The selection process for our public beta program ensures Telly will have fully scaled and representative measurement insights available to advertisers, data partners, and programmers by this summer." 

To participate in the program, customers were required to register and agree to Telly's terms of service, which include providing personal information such as name, age, gender, home address, and ethnicity. Additionally, Telly collects data on viewing habits and purchasing behaviors, allowing advertisers to serve targeted ads to users. Failure to adhere to the terms of service could result in Telly requesting the return of the TV. Refusal to comply may lead to a charge of up to $1,000 to the associated credit card.

Telly CEO Ilya Pozin expressed enthusiasm about shipping the "smartest television ever built" and highlighted the overwhelming response from consumers and the advertising community. During the initial two weeks of signups, 250,000 people registered for the free TVs, with the majority of participants being from the Gen Z and millennial demographics. The company plans to refine its offering through continuous updates and improvements.

“We are thrilled to begin shipping what is by far the smartest television ever built to consumers,” said Pozin in a statement. “The consumer and advertising community’s response has been incredible. Our disruptive ad-supported business model makes the television completely free to consumers, but the most exciting thing about Telly is the technology that enables our dual-screen television to get better with every update.”

The ad-supported TVs feature a second screen that displays advertisements 24/7 in the far right-hand corner, with a news ticker scrolling across the bottom. The interactive nature of the ads allows users to engage with them using the TV remote. While the second screen cannot be turned off, users have control over its brightness to minimize distraction in dark environments. Furthermore, the second screen serves as a control center, enabling users to change channels, adjust brightness, and control volume.

“Our disruptive ad-supported business model makes the television completely free to consumers, but the most exciting thing about Telly is the technology that enables our dual-screen television to get better with every update. We can’t wait for consumers to see what a truly smart TV can do as we continue to surprise and delight Telly households for years to come,” Poznin concluded.

Telly has established partnerships with industry leaders to enhance its advertising capabilities and user experience. The company has collaborated with Nielsen to collect and interpret viewership and ad effectiveness insights, providing valuable data for advertisers and TV programmers. Additionally, Telly has joined forces with Microsoft, Magnite, and MNTN to power the ads displayed on the second screen.

The launch of Telly's TVs marks a significant shift in the television industry, requiring consumers to trade a portion of their privacy for a free entertainment device. With each TV estimated to be worth $1,000, some individuals may find the exchange worthwhile. Telly's disruptive ad-supported business model not only benefits consumers but also provides advertisers access to hard-to-reach younger demographics.

As Telly embarks on its beta program, users will gain access to a range of features, including Spotify integration, LiveOne, and Zoom integration. The company plans to ship millions more free TVs in the coming years, further expanding its market reach and impact.