Audiences were “paying for cable and then they’re watching ad revenue—if you actually look at how much people consume TV, the amount of revenue generated from the eyeballs surpasses the monthly [subscription] fee,” said Pozin. “So the hypothesis on Pluto was can you run and build a sustainable business model off of a single revenue stream, advertising alone? Everyone thought we were crazy.”
Now, Pluto boasts 80 million monthly active users, according to Paramount’s first-quarter earnings. The company also reported its direct-to-consumer ad revenue increased 15% year-over-year to $398 million, inclusive of Pluto and Paramount+. (Pluto was acquired by the media giant for $340 million in 2019.)
Pozin declined to discuss the amount of ad revenue needed to fund the venture. He compared the venture to Pluto’s growth, and said that profitability will be achieved “faster than you think.”
Telly’s reservation site is now active, and the first round of 500,000 TVs will ship this summer. To qualify to receive a device, participants will be asked to fill out a detailed consumer survey, which includes basic demographic information as well as what car the user drives, what restaurants they eat at and whether they participate in sports betting, among other questions. When the recipient receives their Telly TV, that information will then be relayed to the device to customize the experience for them. For instance, a user who bets on sports would see a sports betting tab on the smart screen.
Telly will also be able to use its sensors to detect how many people are viewing content and advertising, and will encourage continued participation in surveys through a rewards system that might build toward a free pizza or streaming subscription.
