Free TV Startup Telly Distributed 35,000 Units to Homes Last Fall

Free TV startup Telly made waves upon its entry into the market in 2023, promising ambitious plans for its unique television sets. Telly aimed to distribute 500,000 units of its innovative TV, which features a secondary screen for advertisements and widgets, by the end of the year. Chief Strategy Officer Dallas Lawrence expressed confidence in meeting this goal in May 2023.

Telly’s Market Performance

However, as of November 2025, the startup had only reached 35,000 TVs in homes, a much lower figure than anticipated. This update, shared with investors, highlighted that Telly had witnessed only a slight increase from the 28,000 units reported in the previous quarter.

Upcoming Production Plans

Despite the underwhelming distribution, Telly plans to increase its production by ordering an additional 100,000 units from its hardware supplier, Foxconn. The company has not commented publicly on details of its investor update.

Unique Business Model

Telly’s model offers consumers a free TV in exchange for watching ads displayed on the secondary screen. This screen, located under the TV’s soundbar, also provides news updates, sports scores, and interactive minigames. Notably, the TVs include a voice assistant and a camera for video calls.

• Preorders of 250,000 televisions were reported by Telly in June 2023.
• Challenges arose in fulfilling these orders due to damage during shipping.
• 10% of TVs shipped via FedEx were reported as damaged.

Logistics and Shipping Improvements

To combat shipping issues, Telly has transitioned to a new logistics partner, RXO, which has seen breakage rates decrease significantly, according to the company. Receiving feedback from users, many reported receiving damaged products, compounding delivery challenges.

Financial Insights

Telly’s business strategy involves giving away high-value hardware. Recently, the startup raised $350 million through two rounds of debt funding. While the total equity raised since inception remains unclear, the company reached $22 million in annualized revenue in Q3 of 2025. This figure indicates that each unit could potentially generate over $50 in advertising revenue monthly, outperforming competitors like Roku, which reported an average of $41.49 per user in 2024.

The Future of Telly

Telly’s leadership, including CEO Ilya Pozin, remains optimistic despite current challenges in scaling the business. Pozin argues that the company’s innovative hardware approach places it alongside tech giants such as Apple and Google. Telly aims to position itself as a significant player in the industry with aspirations of building a trillion-dollar enterprise.