Telly's TV business model, touted as "free" with advertising data instead of cash, is facing shipping and quality issues. The startup had initially promised to ship 500,000 devices in the summer of 2023 but has reportedly delivered only around 35,000 units by November 2025.
A recent investor update revealed that Telly has experienced poor delivery rates, with 10% of shipments arriving broken due to FedEx. Since switching suppliers, few more TVs have been received damaged. However, dozens of customers have reported receiving broken units.
Despite the challenges, Telly's ad-based business model seems to be generating significant revenue. The company reportedly made $22 million in annualized revenue in Q3 2025, equivalent to around $52 per TV in use per month. This is notably higher than what other budget TV brands report.
However, concerns about the quality and reliability of Telly's products persist. Some users have reported receiving TVs with poor image and audio quality or experiencing issues with the included streaming stick and AI avatar home screen. Others are worried about the potential for invasive uses of the integrated camera and mic.
Telly's "free" premise may not be as far-fetched as it initially seemed, but its early success is largely due to strong demand rather than the product itself. As Telly continues to scale, it will need to address these challenges and concerns to build a loyal customer base.
While some argue that Telly's ad-centric business model is forward-thinking, others see it as a threat to user privacy and data security. The company has raised $350 million in debt funding to support its growth, but the path ahead remains uncertain. For now, it seems that Telly's "free" TVs are more of a curiosity than a mass-market success story.
A recent investor update revealed that Telly has experienced poor delivery rates, with 10% of shipments arriving broken due to FedEx. Since switching suppliers, few more TVs have been received damaged. However, dozens of customers have reported receiving broken units.
Despite the challenges, Telly's ad-based business model seems to be generating significant revenue. The company reportedly made $22 million in annualized revenue in Q3 2025, equivalent to around $52 per TV in use per month. This is notably higher than what other budget TV brands report.
However, concerns about the quality and reliability of Telly's products persist. Some users have reported receiving TVs with poor image and audio quality or experiencing issues with the included streaming stick and AI avatar home screen. Others are worried about the potential for invasive uses of the integrated camera and mic.
Telly's "free" premise may not be as far-fetched as it initially seemed, but its early success is largely due to strong demand rather than the product itself. As Telly continues to scale, it will need to address these challenges and concerns to build a loyal customer base.
While some argue that Telly's ad-centric business model is forward-thinking, others see it as a threat to user privacy and data security. The company has raised $350 million in debt funding to support its growth, but the path ahead remains uncertain. For now, it seems that Telly's "free" TVs are more of a curiosity than a mass-market success story.