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... The TV business isn't just about selling TVs anymore. Companies are increasingly seeing viewers, not TV sets, as their most lucrative asset.

Over the past few years, TV makers have seen rising financial success from TV operating systems that can show viewers ads and analyze their responses. Rather than selling as many TVs as possible, brands like LG, Samsung, Roku, and Vizio are increasingly, if not primarily, seeking recurring revenue from already-sold TVs via ad sales and tracking.

How did we get here? And what implications does an ad- and data-obsessed industry have for the future of TVs and the people watching them?

The value of software

Success in the TV industry used to mean selling as many TV sets as possible. But with smart TVs becoming mainstream and hardware margins falling, OEMs have sought new ways to make money. TV OS providers can access a more frequent revenue source at higher margins, which has led to a viewing experience loaded with ads. They can be served from the moment you pick up your remote, which may feature streaming service ads in the form of physical buttons.

Some TV brands already prioritize data collection and the ability to sell ads, and most are trying to boost their appeal to advertisers. Smart TV OSes have become the cash cow of the TV business, with providers generating revenue by licensing the software and through revenue sharing of in-app purchases and subscriptions. ...