How did TVs get so cheap?

Original Article ↗ Hacker News Discussion ↗

Advertising, Data, and Subsidized Hardware

  • Several commenters argue that smart TV prices are partially subsidized by ad revenue and data collection; Roku’s ~$40/year ARPU was cited as an example.
  • This implies a substantial multi‑year subsidy per household, leading some to say a $150–$200 premium for a non‑tracking TV should be viable, yet such products are rare or “wildly expensive.”
  • Others emphasize that “most smart TVs have ads and spyware,” and that the real profit is from ongoing ad impressions and analytics, not hardware margin.

Device Lifespan and Economics

  • Some assume a 3–5 year replacement cycle; others report 8–15 years of use and see little reason to upgrade given streaming bitrates and marginal quality gains.
  • That uncertainty affects how aggressively manufacturers can subsidize via future ad revenue.

Globalization, Labor, and Externalities

  • One camp attributes cheap TVs mainly to Chinese (and broader Asian) manufacturing and lower labor/environmental costs.
  • Others push back, pointing to real wage growth in China, cheap South Korean TVs, and noting that slave/child labor alone doesn’t automatically make everything ever-cheaper (e.g., cocoa).
  • Environmental externalities and laxer regulation in producing countries are mentioned as hidden costs borne by future generations.

Manufacturing Advances and Scale

  • Commenters highlight Moore’s law, LCD process refinements, yield improvements, and especially economies of scale across TVs, monitors, phones, laptops, signage, and car displays.
  • Shipping/packaging is far more efficient than with CRTs; modern sets are dramatically lighter and thinner, though there is debate over how big the box-volume advantage really is.
  • One technical angle: once 4K became standard, cost-per-area dropped mainly via larger glass with similar pixel counts; 8K remains expensive due to higher component counts and low volume.

Smart vs Dumb TVs and Privacy

  • Strong demand in the thread for “dumb” TVs: many users refuse to connect sets to Wi‑Fi or rely on external boxes (Apple TV, Android sticks, HTPC).
  • Digital signage is cited as an ad‑free option, but it’s much pricier and overbuilt (brightness, duty cycle).
  • Some fear future TVs might include cellular radios to bypass home networks; others say that’s uneconomic and currently more urban legend than reality.

Goods vs Services, Regulation, and Baumol

  • Multiple comments contrast cheap tradable goods (TVs, electronics) with expensive local services (housing, education, drywall repair).
  • Some blame heavy regulation and subsidies; others attribute it instead to Baumol’s cost disease and the non‑offshorable, labor‑intensive nature of services.