man when people were telling me that smart TVs are a privacy nightmare, I thought that was because they recorded what you watched using their built in media-player OS.

NOPE! Apparently Roku TV's will give you popups based on what DVDs you're watching through them, because they screenshot the HDMI-in and compare it to a database.
that's a few steps creepier than I was expecting from a garden variety privacy invasion

we've got one "smart" TV in the house and it's not using its internal smartness, we have it hooked up to a apple TV. but now I gotta go dig in the options and see if I have to turn off "SCREENSHOT ALL OUR CONTENT AND MAIL IT TO A SERVER"
@foone IIUC the way they do content fingerprinting is to collect a sample of pixels from the image and check them against a database, they only need a few bytes and it works regardless of the image source, if the TV has a path to the Internet