Friday, June 3, 2016
Samsung smart TVs to start putting ads on top of things people are watching.
Samsung is quietly adding ads onto its smart TVs to try and boost revenues – even after people have bought the sets.The company has already added new “tile ads” to the menus in its premium Internet connected televisions. The move will even affect existing smart TVs since they can be updated with a software update over the Internet.
The ads sit on the TVs’ home screen, alongside the normal apps like YouTube or Netflix, and link out to external content. As such they are likely to prove unpopular among users, and might also draw the attention of regulators and networks.
It comes after Samsung got drawn into controversy over a policy that appeared to allow its TVs to listen in on everything people said in their living rooms. The company replied that the policy had been clumsily written.
Increasing the number of ads will help Samsung increase its revenues even after people have bought their TVs. Though Samsung already has some deals in place, like taking part of the revenues from people watching Netflix on their TVs, it has struggled to generate revenues on top of the money it gets from selling hardware.
The move is being made to try and counteract slowing growth in the TV industry, according to the Wall Street Journal, which first reported the news. Though Samsung is dominant in that market, selling 20% of units according to analysts, market share is declining because it is largely saturated.