this post was submitted on 19 Aug 2024
894 points (98.6% liked)
Technology
59582 readers
4294 users here now
This is a most excellent place for technology news and articles.
Our Rules
- Follow the lemmy.world rules.
- Only tech related content.
- Be excellent to each another!
- Mod approved content bots can post up to 10 articles per day.
- Threads asking for personal tech support may be deleted.
- Politics threads may be removed.
- No memes allowed as posts, OK to post as comments.
- Only approved bots from the list below, to ask if your bot can be added please contact us.
- Check for duplicates before posting, duplicates may be removed
Approved Bots
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
Why is basic math.
In a made up scenario let's start with a dumb 50"ish TV. That cost them around $100 to build. Add in another $50 for shipping and distribution fees. It's at the store for $150 cost. If they set the price at $400. There is $250 dollars of profit to share between the store and the manufacturer. The manufactuerer likely gets under $100.
Now for a smart TV the revenue stream looks different. First their costs only go up by a few dollars for adding the "smart" chips. So let's say $155 cost. Then they collect revenue from the streaming providers to be supported by their smart TV say $30 per set. Then they collect the $20 per set per year in user data collected. So if they price the smart TV the same as the dumb one they generate $95 from the sale of the set.
So the profit from a dumb TV is $100 at he point of sale.
The profit from a smart TV is $225+ in a constant revenue stream over 5 years.
And this is why we see so much advertising for smart TV's as being the best thing.