[nimih]

>As evidenced by the proliferation of overlay ads in their smart TVs

Genuine question, is it even an option to pay $X more and get an otherwise identical TV with no overlay ads? It's admittedly been 7 or 8 years since I last purchased a TV, but I don't remember such an option being available at the time, and the only time I can ever remember seeing that sort of choice being available was with the kindle, where it's very explicit that the ad-free (but otherwise identical) version is like $20 more (or, was when I bought my kindle, which again was many years ago).

That being said, I'd be extremely curious to see sales numbers for ad-free vs ad-laden kindles, although I sort of doubt I'll ever have the chance to.

[brimble]

Economies of scale and some sort of insufficient-competition market failure seem to sometimes make relatively-niche choices far more expensive than they "should" be, and TVs seem to be one of those cases—so you end up with manufacturers making $100 extra dollars (numbers made up, but bear with me) per panel on ads, but it'd cost you $1,000 to get the same panel without ads, which distorts apparent consumer preferences (pushing that niche even farther out of the mainstream, and so making the gap even worse).