There's a simple reason your new smart TV was so affordable: It's collecting and selling your data | WHAT REALLY HAPPENED


There's a simple reason your new smart TV was so affordable: It's collecting and selling your data

A recent interview on The Verge's podcast with Vizio's chief technology officer, Bill Baxter, did a great job illuminating how this works.

"This is a cutthroat industry," Baxter said. "It's a 6% margin industry. The greater strategy is I really don't need to make money off of the TV. I need to cover my cost."

More specifically, companies like Vizio don't need to make money from every TV they sell.

Smart TVs can be sold at or near cost to consumers because Vizio is able to monetize those TVs through data collection, advertising, and selling direct-to-consumer entertainment (movies, etc.).

Or, as Baxter put it: "It's not just about data collection. It's about post-purchase monetization of the TV."

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