Vizio’s results for the third quarter of 2024 show where a smart TV maker’s profit sits. Its Device segment had a gross loss of $6.7 million on $247.7 million of net revenue. Its Platform+ segment had $115.8 million of gross profit on $197.0 million of net revenue, according to the release Vizio filed with the SEC on 6 November 2024. Vizio’s 10-K says Platform+ revenue comes from “sales of advertising and related services, data licensing, sales of branded buttons on our remote controls and content distribution.”
That split is back in view. On 25 October 2026, an X post by Tristan (@Tristan0x) asking why smart TVs are so cheap relayed claims by the account @log4j about a rooted 2025 Samsung TV. On 6 October 2026, three buyers filed a proposed class action against Samsung over the same tracking feature, Courthouse News reported. The researcher’s claims are unverified.
Update (26 Oct): an OpenAI researcher says Codex blocks on TV clean-up are “mostly accidental”. Open-source developer Eric S. Raymond wrote on X late on 25 October that he had heard OpenAI and Anthropic had restricted their models so that people trying to use them to “clean the spamware and spyware out of their televisions” were blocked, and warned that such restrictions would push paying users toward Chinese open-weight models and open-source projects.
OpenAI researcher Roon replied early on 26 October, on a personal account: “these blocks are mostly accidental and a result of difficult decision boundaries; there is no prohibition against reverse engineering with codex. it’s getting fixed.” That is a researcher’s post, not an official OpenAI statement, and Raymond’s account was described as a rumour; neither post names a TV maker.
Business Pill · CONSENT
A short explainer of consent: you can only agree to what you know. It teaches the general idea only and says nothing about any company in this story.
The key insight: As we read it, Vizio’s filing shows the split in one quarter: a $6.7 million gross loss on the Device segment and $115.8 million of gross profit on Platform+, which Vizio’s 10-K says includes advertising and data licensing. Separately, the new Samsung claims, the class action and the Texas agreement concern ACR viewing data.
In the quarter to 30 September 2024, Vizio reported total net revenue of $444.7 million and total gross profit of $109.1 million. The Device line had a gross loss of $6.7 million, against a $3.3 million gross loss a year earlier. Platform+ gross profit rose 16% to $115.8 million.
The release put SmartCast average revenue per user at $37.17, up 18%, and said Vizio reached 19.1 million SmartCast Active Accounts. Vizio’s 10-K describes Platform+ as SmartCast, its smart TV operating system, and Inscape, “which powers our data intelligence and services.”
Tristan’s post makes the same comparison, citing the Vizio release, and says Walmart bought Vizio in 2024.
Vizio, Q3 2024
Net revenue
Gross profit
Device
$247.7M
−$6.7M
Platform+ (advertising, data licensing and other)
$197.0M
$115.8M
Total
$444.7M
$109.1M
Source: Vizio Holding Corp. Q3 2024 results (SEC exhibit 99.1, 6 Nov 2024); segment description from Vizio’s 10-K for 2023.
Vizio gross profit by segment, three months to 30 September 2024 and 2023: Platform+ $115.8 million and $99.8 million; the TV (Device) segment had gross losses of $6.7 million and $3.3 million. Source: Vizio Q3 2024 results, SEC exhibit 99.1, 6 Nov 2024.
What Was Posted on X
If you’ve ever wondered why smart TVs are so cheap, this is why.
@log4j rooted his Samsung and found an always-on hot mic, automatic content recognition, geolocation, network mapping, ad targeting and user profiling, shared with Samsung’s “400 partners”.
A lot of it can be blocked in <15 min, wrote a basic guide below.
What your TV is doing
The main culprit is ACR (automatic content recognition). Your TV screenshots what’s on screen, fingerprints it, and sends it home to build your ad profile. Samsung does it every 500ms, LG every 10ms [1].
What is insane: it happens on connected devices too. Plug in your laptop, your console, your work machine, and your TV can fingerprint that via HDMI [1]. He also found that if your Samsung doesn’t have a mic, it’ll look for one from a connected soundbar or bluetooth device. https://x.com/log4j/status/2113762242327892456 It’s on by default, and you likely agreed to it on the setup screen you clicked through in 10 seconds.
Step 1: Turn off ACR
Samsung: Terms & Privacy โ Viewing Information Services LG: Live Plus Vizio: Viewing Data Roku: “Use info from TV inputs” Sony/Google TV: Samba Interactive TV
Menus vary by model, but those are the names to look for. While you’re in there, opt out of interest-based ads, reset your advertising ID, decline every optional privacy agreement, turn off voice recognition, and delete apps you never open.
Put the TV, cameras, speakers and vacuum on your router’s guest/IoT network. The logic is simple: these devices rarely get patched. If one gets compromised (getting drastically more frequent with AI), it shouldn’t be able to see your other devices or home network.
Step 3: Block trackers for the whole house with DNS-level filtering
NextDNS (cloud-based) is easy and has a solid free plan. Pi-hole is a little bit more work if you prefer self hosting. For simplicity we’ll focus on the former.
1. Sign up at http://nextdns.io (free tier is plenty) 2. Privacy tab: add a blocklist (OISD is a good bet) and turn on Native Tracking Protection for Samsung, LG, Roku, Amazon (see attached image) 3. Setup tab: copy your endpoint 4. Paste it into your router’s DNS settings as DNS-over-HTTPS/TLS (or use the IPs + “Link IP” if your router only does plain DNS) 5. Bonus: block outbound port 53 except to your router. Some devices hardcode their own DNS to get around you
Then open the NextDNS logs and watch how often your TV phones home. It’s eye-opening. If an app or update breaks, find the domain in the logs and allowlist it.
Why they do this
TV prices are down 97% since 2000 [2]. Most of that is better manufacturing and brutal competition. But once margins on the hardware hit zero, the cost moved to you.
In Q3 2024, Vizio lost $6.7M selling TVs and made $115.8M in gross profit from ads and viewing data [3]. They’ve said on earnings calls that they keep TV prices low to grow the audience they sell to advertisers. Walmart bought them in 2024.
This isn’t a conspiracy theory either. Vizio paid $2.2M to the FTC in 2017 for tracking 11 million TVs without consent. Last December, Texas sued Samsung, LG, Sony, Hisense and TCL over ACR. Samsung and LG have since agreed to stop collecting that data without explicit consent [4].
TL;DR 1. ACR off 2. Ads + voice off 3. Smart devices on their own network 4. NextDNS filtering on the router
Tristan (@Tristan0x) posted this on 25 October 2026. It relays claims by @log4j about a rooted Samsung TV, cites Vizio’s Q3 2024 figures, and lists the ACR settings names by brand. The piece treats the Samsung claims as unverified.
this is pretty evil and clever.
so if your samsung TV model doesnt have a microphone, it will look for connected devices with one, such as a soundbar or a connected bluetooth device.
@log4j posted this on 23 October 2026. It says a Samsung TV model without a microphone will look for a connected device with one, such as a soundbar or Bluetooth device, and that this gets shipped off to Bixby. These are @log4j’s claims.
@esrtweet @OpenAI @AnthropicAI these blocks are mostly accidental and a result of difficult decision boundaries; there is no prohibition against reverse engineering with codex. it’s getting fixed
OpenAI researcher Roon, replying on X on 26 October to Eric S. Raymond, OpenAI and Anthropic, wrote that “these blocks are mostly accidental and a result of difficult decision boundaries”, that there is no prohibition against reverse engineering with Codex, and that it is getting fixed. A researcher posting on a personal account, not an official OpenAI statement.
What the Researcher Claims
Tristan’s post says @log4j rooted a Samsung TV and found “an always-on hot mic, automatic content recognition, geolocation, network mapping, ad targeting and user profiling, shared with Samsung’s “400 partners”.” In the post @log4j wrote that Tristan quoted, @log4j said the TV was a 2025 model and asked “write up?”
In a separate post on 23 October 2026, @log4j wrote that if a Samsung TV model has no microphone, “it will look for connected devices with one, such as a soundbar or a connected bluetooth device,” and that “this gets shipped off to bixby.” We have not seen a write-up or any technical detail behind these claims, and we do not describe how the device was accessed.
What Researchers and Regulators Have Established
A 2024 study on arXiv, “Watching TV with the Second-Party: A First Look at Automatic Content Recognition Tracking in Smart TVs,” audited Samsung and LG sets. It says Samsung’s documentation describes ACR capturing frames every 500ms and LG’s every 10ms. The authors report that “ACR works even when the smart TV is used as a “dumb” external display, opting-out stops network traffic to ACR servers.”
In February 2017, Vizio agreed to pay $2.2 million to settle Federal Trade Commission and New Jersey charges that it collected viewing data on 11 million TVs without consumers’ knowledge or consent, the FTC said. The complaint said the sets captured “second-by-second information about video displayed on the smart TV.”
On 26 February 2026, Texas Attorney General Ken Paxton announced an agreement under which Samsung “must halt any collection or processing of ACR viewing data without obtaining Texas consumers’ express consent.” The release said Paxton’s suits against Sony, LG, Hisense and TCL remain ongoing. Tristan’s post says Samsung and LG both agreed; the Texas release we read names Samsung’s agreement only.
The 6 October class action, filed in Northern California federal court by Danielle Tillery, Michael Walsh and David Rosenberg, says Samsung captures a screen “about twice every second,” according to Courthouse News. The plaintiffs seek an injunction and damages. Courthouse News said representatives for Samsung did not immediately respond to a request for comment. These are allegations.
What Samsung Says
Samsung’s US support page on the feature says ACR runs if a user opted in “to the Viewing Information Services while setting up your Samsung Smart TV,” and that the information may include viewing history, TV identifiers and IP address. It says: “Please note that Samsung does not record or watch any of the content displayed on your Smart TV.” It adds that users can opt out at any time in the Settings menu.
Tristan’s post names the settings to look for on each brand, including “Viewing Information Services” on Samsung and “Live Plus” on LG.
As we read it, the filing is the business-model fact: Vizio reported Device net revenue of $247.7 million with a $6.7 million gross loss, and Platform+ net revenue of $197.0 million with $115.8 million of gross profit.
As we read it, the Samsung posts are claims to test, not findings: Tristan relayed @log4j’s list of what the rooted set does, and @log4j wrote that a set without a microphone looks for a connected one.
As we read it, the rules are already moving: the FTC settled with Vizio in 2017, Texas announced its Samsung agreement on 26 February 2026, and a class action was filed on 6 October 2026.
Samsung, US support page on ACR
“Please note that Samsung does not record or watch any of the content displayed on your Smart TV.”
Three Implications
FOR TV MAKERS Texas said Samsung must halt ACR collection or processing without Texas consumers’ express consent, and that its suits against Sony, LG, Hisense and TCL remain ongoing.
FOR ADVERTISERS BUYING TV DATA The FTC said in 2017 that Vizio collected viewing data on 11 million TVs without consumers’ knowledge or consent; the 6 October complaint makes allegations about Samsung Ads, per Courthouse News.
FOR BUYERS The 2024 arXiv study reports that opting out stopped network traffic to ACR servers on the Samsung and LG sets it audited.
The framework puts it this way: “the more aggressive they get with subsidies, the worse their unit economics look on the surface, but the more harness signal and lock-in they win.”
As we read it, Vizio’s segment table has the same shape in a different industry: the Device segment showed a gross loss while Platform+ carried the gross profit. The framework was written about AI labs in June 2026 and does not discuss TVs.
What Is Not Established
The @log4j claims, including the microphone behaviour and the “400 partners” figure, come from X posts; we have not seen the write-up or evidence, and we did not contact Samsung or @log4j. The class action’s statements are allegations, as reported by Courthouse News; we did not read the complaint. The Vizio figures are from the third quarter of 2024 and describe Vizio, not Samsung; we did not find comparable segment figures for Samsung’s TV business in what we read. The study’s 500ms and 10ms figures are the authors’ citations of company documentation.
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In Vizio’s third quarter of 2024, the Device segment had a $6.7 million gross loss and Platform+ had $115.8 million of gross profit. Separately, a researcher’s unverified claims about Samsung sets, a 6 October class action and the Texas agreement all concern ACR and the viewing data it collects.
95,000+ executives read Business Engineer for the AI strategy frameworks cited by ChatGPT, Claude, and Perplexity.
A note on sourcing. Vizio’s figures are from its Q3 2024 results filed with the SEC and its 10-K for 2023. The claims about Samsung TVs come from X posts by Tristan and @log4j and are unverified. The class action is as reported by Courthouse News; the Texas agreement and the FTC settlement are from the agencies’ releases; the ACR timing figures are from the 2024 arXiv study. We did not contact Samsung, Vizio or the researchers.
Gennaro Cuofano is a CRO and tech executive who has worked in AI since late 2015, starting with bringing NLP, natural-language generation, voice and chatbot products to the marketing industry. His background is in law and finance: he holds a Master's degree in Law and an International MBA with an emphasis on corporate finance (LUISS Business School and the University of San Diego, 2012), and worked as a financial analyst at a real-estate investment firm in San Diego and as an assistant controller. His work focuses on business model strategy, business engineering and, more broadly, structural analysis: how companies make money, read from their own filings. He created FourWeekMBA and leads research there and at The Business Engineer, his newsletter on AI and business strategy, with over 95,000 subscribers and more than 1,000 published analyses. His writing has also appeared on Entrepreneur (for example, How to Digitize a Family Business in Europe) and HackerNoon. Find him on LinkedIn and Substack. See how we source.
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