Smart TVs, once just for entertainment, have become powerful data collection tools. Recent reports reveal that these devices, using Automatic Content Recognition (ACR) technology, track user activity to enhance targeted advertising.
ACR analyzes on-screen content in real-time, creating detailed user profiles. Advertisers then use these profiles to serve personalized ads on TVs and other digital platforms. This shift has changed content consumption, often without users realizing it.
Roku is a key player in this trend. In 2024, it reported $3.5 billion in ad revenue, making up 85% of its earnings. The company has acquired ACR tech firms to improve ad targeting, even earning an Emmy in 2023 for its advancements.
With over 90 million users, Roku has become a data-driven giant, surpassing platforms like Apple TV+. The company collects more than just viewing habits, tracking consumer preferences and behaviors. This shift has transformed it from a hardware seller into a major digital advertising entity.
Other manufacturers are following suit. Samsung, LG, and Vizio have launched dedicated ad divisions—Samsung Ads, LG Ad Solutions, and Vizio Ads. Tech giants like Amazon and Google are also integrating their vast data resources into TV platforms to refine ad targeting.
The market reflects this trend. By the end of 2024, research by Antenna showed that 43% of U.S. streaming subscriptions included ads, marking a shift toward ad-supported content.
Many users remain unaware of how much data their smart TVs collect. During setup, they often agree to ACR tracking without fully understanding its impact. While disabling ACR is possible, it can limit key features, keeping users in the data collection cycle.
As smart TVs evolve, concerns about privacy and consent grow. Users must understand these data practices and adjust their settings accordingly. Governments may also need to step in to ensure transparency and protect consumer rights in the digital age.