Let's be clear: smart TVs are a privacy nightmare. Almost all of them keep track of everything you watch, even when you're using an HDMI cable, and send it off to analytics firms, advertisers, and who knows who else. In capitalist America, TV watches you.
Having said that, it's not as though Apple collects no data. And using an Apple TV means buying a $130+ streaming box, on top of the price of your TV, which adds up quickly if there are multiple TVs in your home. With this in mind, let's break down the privacy pros of an Apple TV over using the operating system in your smart TV.
Almost every smart TV on the market uses technology called automatic content recognition (ACR) to create a record of everything you do on TV. You can think of this technology as similar to the music recognition service Shazam, but for TV shows, movies, and video games instead of music. Software like this is constantly running in the background of your TV, creating an ongoing list of everything you watch. That data is then sold to and shared with various third parties. Notably, this data collection happens even while you're using an HDMI port, meaning marketers out there know exactly how much time you put into Elden Ring over the past few years.
Apple does gather some data (and might grab more)
Having said that, Apple TV devices do record some data—just a lot less than similar devices. Over at Ars Technica, Scharon Harding wrote a breakdown of the privacy pros and cons of an Apple TV, which you can read if you really want to get into the finer points of this issue (along with speculation about how things might change). She concluded that the Apple TV is the most private streaming gadget, which I agree with.
Apple TVs also give you a lot of control over what information the apps you install have. Apps can access information including your location, your photos, other Apple-stored media, and your HomeKit data, but only if you allow them to (there will be a pop-up asking you whether you want to grant permission). You can also decide which, if any, applications you want to grant access to tracking features. It's a level of control that's not common in smart TVs, to say the least.
Overall, though, the Apple TV itself—as opposed to applications running on the device—don't collect much information about you or your viewing habits.
Is there anything better?
The first being that you'll likely need to control everything with a mouse and keyboard. (Once upon a time you could work around this using Kodi, but plugins for most streaming services stopped working ages ago.) Put simply: if you want a single device you can buy, plug into your TV, and watch common streaming apps using a remote control, Apple TV is the most privacy-centric device you can buy and use that way.
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