Free TV startup Telly only had 35,000 units in people’s homes last fall | The VergeSkip to main contentThe homepageThe VergeThe Verge logo.The VergeThe Verge logo.TechReviewsScienceEntertainmentAICESHamburger Navigation ButtonThe homepageThe VergeThe Verge logo.Hamburger Navigation ButtonNavigation DrawerThe VergeThe Verge logo.Login / Sign UpcloseCloseSearchTechExpandAmazonAppleFacebookGoogleMicrosoftSamsungBusinessSee all techGadgetsExpandLaptopsPhonesTVsHeadphonesSpeakersWearablesSee all gadgetsReviewsExpandSmart Home ReviewsPhone ReviewsTablet ReviewsHeadphone ReviewsSee all reviewsAIExpandOpenAIAnthropicSee all AIVerge ShoppingExpandBuying GuidesDealsGift GuidesSee all shoppingPolicyExpandAntitrustPoliticsLawSecuritySee all policyScienceExpandSpaceEnergyEnvironmentHealthSee all scienceEntertainmentExpandTV ShowsMoviesAudioSee all entertainmentGamingExpandXboxPlayStationNintendoSee all gamingStreamingExpandDisneyHBONetflixYouTubeCreatorsSee all streamingTransportationExpandElectric CarsAutonomous CarsRide-sharingScootersSee all transportationFeaturesVerge VideoExpandTikTokYouTubeInstagramPodcastsExpandDecoderThe VergecastVersion HistoryNewslettersExpandThe Verge DailyInstallerVerge DealsNotepadOptimizerRegulatorThe StepbackArchivesStoreSubscribeFacebookThreadsInstagramYoutubeRSSThe VergeThe Verge logo.Free TV startup Telly only had 35,000 units in people’s homes last fallComments DrawerCommentsLoading commentsGetting the conversation ready...ColumnCloseColumnPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All ColumnGadgetsCloseGadgetsPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All GadgetsLowpassCloseLowpassPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All LowpassFree TV startup Telly only had 35,000 units in people’s homes last fallFew TVs installed, many broken in transit.Few TVs installed, many broken in transit.by Janko RoettgersCloseJanko RoettgersLowpass author, Verge contributorPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Janko RoettgersJan 22, 2026, 5:00 PM UTCLinkShareGiftPhoto by Emma Roth / The VergeJanko RoettgersCloseJanko RoettgersPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Janko Roettgers is a tech reporter and author of the Lowpass newsletter.This is Lowpass by Janko Roettgers, a newsletter on the ever-evolving intersection of tech and entertainment, syndicated just for The Verge subscribers once a week.When free TV startup Telly came out of stealth in 2023, it did so with big promises: Company executives told the media at the time that Telly would ship 500,000 units of its unique TV set, which incorporates a second screen for ads and widgets, before the end of the year.“Shipping 500,000 TVs ... that’s not going to be a problem,” chief strategy officer Dallas Lawrence told StreamTV Insider in May of 2023. Two months later, Telly executives told the same outlet that the company was going to ship “millions more” in 2024.Two years later, the company was still far from reaching that goal. In a Q3 update sent to investors in November 2025, which I was able to review, Telly revealed that it had just 35,000 TV sets in people’s homes. Telly ended the prior quarter with 28,000 TVs in the field, according to the same note.The startup did suggest that it was about to significantly ramp up deliveries and order another 100,000 TVs from its hardware supplier, Foxconn.Telly declined to comment on the record on specifics included in its investor update when contacted for this story.Telly’s promise is a simple one: Consumers will get a free TV in exchange for watching ads displayed on the device’s second screen. That secondary screen, positioned under the TV’s soundbar, also displays widgets with sports scores, news headlines, and even minigames. Telly TVs also come with their own voice assistant and have an integrated camera for video calls and motion games.Interest in the device has been significant: Telly announced in June 2023 that it had gotten preorders for 250,000 TVs. However, fulfilling all those orders appears to be a lot more challenging than the company initially anticipated.One major challenge has to do with Telly’s decision to forgo traditional retail channels: The company lets consumers preorder TVs for free online and then ships them straight to their doorsteps. Unfortunately, a lot of them have arrived damaged. On Reddit, Telly owners have posted photos of dozens of broken TVs, with some complaining that their replacement TVs arrived damaged as well.In its Q3 investor update, Telly revealed just how widespread this problem has been: A whopping 10 percent of Telly TVs shipped via FedEx arrived broken, according to the letter. The company has since switched to a new logistics partner, and breakage has gone down significantly since, according to the letter. Posts on Reddit reveal that Telly now uses RXO, a company that is also being used by Samsung to deliver and install TVs.Telly executives have in the past called their devices “$1,000 TVs.” Turns out giving high-priced hardware away for free, even to a small group of consumers, can be quite capital-intensive: In recent months, Telly raised two rounds of debt funding totaling $350 million, according to the investor update. (It’s unclear how much equity Telly has raised since its founding.)There does appear to be some silver lining for Telly: The startup reached $22 million in annualized revenue in Q3 of 2025, according to the investor note. Taking into account the small number of Telly TVs in people’s homes, this suggests that each TV set could generate more than $50 in advertising revenue for the company per month. That would be significantly higher than other smart TV businesses: Roku’s average revenue per user reached $41.49 for all of 2024. (The company stopped reporting ARPU in 2025.)In other words: Having a dedicated second screen in people’s homes that shows a constant stream of ads can be a lucrative business. Scaling that business to be more than a novelty is the hard part.At least publicly, Telly’s leadership kept brushing off such concerns even as the company’s internal numbers remained dismal. “When investors told me [that] hardware is hard, it just didn’t sit well with me. I just called bullshit on that,” said Telly CEO Ilya Pozin during a September podcast appearance. Arguing that some of the world’s largest companies like Apple, Google, and Tesla are all doing hardware, Pozin added: “That’s what we’re doing here with Telly. I think we have an opportunity to build a trillion-dollar company.”

Follow topics and authors from this story to see more like this in your personalized homepage feed and to receive email updates.Janko RoettgersCloseJanko RoettgersLowpass author, Verge contributorPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Janko RoettgersColumnCloseColumnPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All ColumnGadgetsCloseGadgetsPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All GadgetsLowpassCloseLowpassPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All LowpassTVsCloseTVsPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All TVsMost PopularMost PopularWhat a Sony and TCL partnership means for the future of TVsVolvo aims for an EV reset with the new EX60 crossoverHow much can a city take?Everyone can hear your TV in their headphones using this transmitterAnthropic’s new Claude ‘constitution’: be helpful and honest, and don’t destroy humanityThe Verge DailyA free daily digest of the news that matters most.Email (required)Sign UpBy submitting your email, you agree to our Terms and Privacy Notice. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.Advertiser Content FromThis is the title for the native adMore in ColumnOne year in, Big Tech has out-maneuvered MAGA populistsYou need to listen to the cosmic horror-comedy podcast Welcome to Night ValeUnder Musk, the Grok disaster was inevitableThis 3D-scanned insole is another example of placebo tech‘Sideshow’ concerns and billionaire dreams: What I learned from Elon Musk’s lawsuit against OpenAICasting is dead. Long live casting!One year in, Big Tech has out-maneuvered MAGA populistsTina NguyenJan 21You need to listen to the cosmic horror-comedy podcast Welcome to Night ValeTerrence O'BrienJan 18Under Musk, the Grok disaster was inevitableHayden FieldJan 18This 3D-scanned insole is another example of placebo techVictoria SongJan 16‘Sideshow’ concerns and billionaire dreams: What I learned from Elon Musk’s lawsuit against OpenAIAlex HeathJan 16Casting is dead. Long live casting!Janko RoettgersJan 16Advertiser Content FromThis is the title for the native adTop StoriesAn hour agoWhy nobody’s stopping GrokVideo60 minutes agoClaude Code is suddenly everywhere inside MicrosoftJan 21What a Sony and TCL partnership means for the future of TVsJan 21Anthropic’s new Claude ‘constitution’: be helpful and honest, and don’t destroy humanityTwo hours agoGoogle Search AI Mode can use Gmail and Photos to get to know youJan 19It’s worse than it looks in MinneapolisThe VergeThe Verge logo.FacebookThreadsInstagramYoutubeRSSContactTip UsCommunity GuidelinesArchivesAboutEthics StatementHow We Rate and Review ProductsCookie SettingsTerms of UsePrivacy NoticeCookie PolicyLicensing FAQAccessibilityPlatform Status© 2026 Vox Media, LLC. All Rights Reserved

Telly, a startup offering free TVs in exchange for advertising revenue, experienced significant challenges in its initial rollout. Founded in 2023, the company initially aimed to ship 500,000 units by the end of 2023 and “millions more” in 2024, fueled by ambitious projections. However, by November 2025, Telly had only managed to get 35,000 TV sets into consumers’ homes. This stark difference highlights the difficulties inherent in scaling a novel hardware-based advertising model.

The company’s direct-to-consumer distribution strategy, bypassing traditional retail channels, proved problematic. A substantial number of units arrived damaged, with reports of widespread breakage appearing on platforms like Reddit, where owners documented numerous instances of damaged TVs. Telly initially attributed these issues to 10% of shipped units arriving damaged, leading to a switch in logistics partners to RXO, a company also used by Samsung. The CEO, Ilya Pozin, dismissed concerns about hardware being difficult to produce, characterizing them as “bullshit.”

Despite these setbacks, Telly generated $22 million in annualized revenue during the reported period, based on the limited number of TVs in use. This revenue stemmed from the company’s ability to generate over $50 per month of advertising revenue from each TV set – a figure surpassing Roku’s average revenue per user. This financial metric suggests a viable business model was present, but the significant challenges in acquiring and deploying the necessary hardware underscored the operational hurdles. The company’s aggressive fundraising, totalling $350 million in two debt rounds, reflected the substantial investment required to achieve its expansion goals. Ultimately, Telly’s story represents a cautionary tale about the complexities involved in translating a promising concept into a successful, scalable business.