Smart TVs collect extensive data on user viewing habits through Automatic Content Recognition (ACR). This technology captures screenshots multiple times per second to identify content watched on built-in apps, streaming services, and connected devices like gaming consoles. Beyond content, TVs also gather technical data such as IP addresses, Wi-Fi details, and app usage patterns. Voice-enabled features can also record short audio snippets.
The collected data is processed to create a 'fingerprint' of user activity, which is then uploaded to the TV manufacturer. This processed data can be sold to data brokers, who combine it with other information to build detailed user profiles for advertising purposes. For example, Vizio's Platform+, which includes advertising and sponsorships, generated $598 million in 2023.
The ACR market is a lucrative business, with analysts predicting it will reach $23.37 billion by 2034. Manufacturers state that revenue from ACR helps keep TV prices low. However, critics argue that the methods for disabling ACR are overly complex and not clearly disclosed to users. This practice has led to legal challenges, including litigation against major TV manufacturers in Texas, highlighting ongoing privacy concerns regarding 'sofa surveillance'.
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Research from Northeastern University indicates that smart TVs from Samsung, Vizio, and Roku continue to send data to automatic content recognition (ACR) endpoints even after users opt out of tracking. This suggests potential privacy violations, as ACR data is used for viewership measurement and targeted advertising.
Smart TVs utilize Automatic Content Recognition (ACR) to monitor user viewing habits across various inputs, collecting data like IP addresses and app usage. This data is then processed and sold to data brokers, contributing to a multi-billion dollar industry that personalizes advertising and raises privacy concerns.