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I think one thing to watch out for is revenue vs profits. So while it might be more revenue, the ad system needs infrastructure, developers, troubleshooting, sa
by kevin_nisbet 6y ago
I think one thing to watch out for is revenue vs profits. So while it might be more revenue, the ad system needs infrastructure, developers, troubleshooting, sales department, etc, etc.
So I'd be really curious how this equates to the profit on the TV, and how much those costs can be amortized between the install base vs actual revenue per user.
At previous company (wireless telco), while not the same thing, we had the intercepting DNS that everyone hates, for typo'd queries redirect to our own search page. I asked one time how much we make in the ad revenue on that, and the basic napkin math was that we were probably losing money. Just the amount of time, complaints, maintenance, keeping it running, etc burned hundreds of hours a year. But it was buried in other budgets so the company thought they were making money.
Even then I don't know how they justified it, it was peanuts compared to mainline revenue.
- blacksmith_tb 6y agoAbsolutely - it wouldn't surprise me at all if it's a money-losing proposition for Samsung, you'd hope that someone, somewhere in their Accounting dept. might notice that as well...