This is a translation of a foreign article, so there may be mistranslations.
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Smart TVs are becoming increasingly ad-focused and consuming more data.
Smart TVs provide a gateway to the world of streaming, but they also collect vast amounts of data about users. This data is used for advertising and may even contain malware. This trend continues to grow.
FlatpanelsHD has been documenting for years how data collection and advertising have become core elements in smart TVs including Google TV, Fire TV, Tizen, webOS, and Roku. The Center for Digital Democracy (CDD) has called this a "privacy nightmare."
According to another report, as long as smart TVs are connected to the internet, they continuously capture screenshots of all screens users watch through so-called ACR (Automatic Content Recognition) technology, including HDMI connections. Earlier this year, five TV manufacturers were sued for these practices.
Data Collection Driven by Advertising
Data collection is done to enable personalized advertising on TVs, but more often it is used to target advertisements when viewing content on other services or platforms like PCs or mobile devices. In other words, it means advertisements can follow you as you move around the internet.
This doesn't mean smart TV manufacturers directly control advertisements that appear when watching YouTube, but the collected data can influence the advertisements shown to you. It can also affect what content is recommended and when. Similarly, your actions elsewhere on the internet can determine the type of advertisements appearing on your TV. Especially if you have a user profile, data about your habits and preferences is combined.
This explains why smart TV manufacturers have recently been enthusiastically adopting so-called FAST (Free Ad-Supported Television) channels.
Advertisements within smart TV interfaces have been introduced multiple times after product purchase. This is possible because manufacturers can update the software, and they often do so without notifying users of the changes. Regulations to protect consumers in this area are limited.
You may have already noticed an increase in advertisements on the top carousel or home screen of your smart TV. Many of the "recommendations" there are paid placement ads. Or you may have seen advertisements when your smart TV entered screensaver mode. While advertisements are also increasing in streaming services themselves, this is outside the control of TV manufacturers. TV platforms display ads in the top carousel, which are not always for new movies or series. The recommendations below are also paid placement ads.
Factors Making Smart TVs Cheaper
Manufacturers claim that data is also used for product development, but this accounts for only a very small part of the whole picture.
Another claim is that this helps lower the initial purchase price of TVs or at least keep prices stable. In a time when prices for many other products are rising due to inflation, TVs are actually relatively affordable. As a result, consumers get cheaper TVs by accepting participation in the advertising ecosystem.
However, the biggest winner is still the TV manufacturer. This is because they can generate substantial revenue through advertising during the TV's lifecycle if users simply allow it. In the United States, experiments are underway to provide smart TVs for free in exchange for users accepting advertisements and data collection.
A Growing Trend
While these practices are primarily led by major U.S. tech companies like Amazon, Google, and Meta, as well as smaller players like Roku and Vizio, TV platforms in Asia and Europe are also joining this trend. In recent weeks, additional moves have been spotted to make smart TVs even more ad-focused.
For example, Roku combined over-the-air TV channels with internet connectivity. Originally, these two were unrelated. Through this, Roku was able to collect user data through screenshots (ACR) and so on. After users filed complaints, Roku agreed to remove the internet connectivity requirement for traditional antenna TV. It shows that complaints can bring about change.
U.S. TV brand Vizio has come under scrutiny after being acquired by Walmart last year. Vizio's new smart TVs cannot be used at all unless users set up a Walmart account, and users must consent to their viewing habit data being linked to shopping behavior in both online and offline stores. It is easy to imagine this approach being extended to many other areas.
In March, Samsung announced a partnership with Amazon to show product advertisements on Amazon based on what users watch on TV at home.
The Malware Problem
While you watch a movie, your smart TV may already be crawling the web. This could be to collect data for AI models, or it could be because it has become part of a large botnet that can use your hardware and internet connection for legitimate or illegal purposes. This suggests that your smart TV is "conducting business," and that you yourself are the product.
These systems can be classified as malware, but they are more commonly found in Chinese-made streaming boxes or Android TV devices based on the Android open source version rather than Google TV.
These are just a few recent examples showing how smart TVs are becoming increasingly ad-focused and data-hungry. As an alternative without ads and extensive data collection, there is the Apple TV 4K, which is built on Apple's tvOS and does not use ACR or similar systems. However, you must not forget to disconnect your smart TV from the internet. Otherwise, data collection will continue in the background.
▶ Original Source: https://www.flatpanelshd.com/news.php?subaction=showfull&id=1776423441
