#Cable #Television #Googletv
So the first big brand deal with Google although a small one. I can see more of these happening and I think it will probably snowball quickly.
So the first big brand deal with Google although a small one. I can see more of these happening and I think it will probably snowball quickly.
Disney and Google up a tree...
They have a compelling argument for content owners. The existing model has the content owners capped to whatever rights fees they can negotiate with the carriers who are in turn capped by their subs and eyeballs. On the other hand Google can bring a potentially worldwide viewing audience, better quantified value numbers (actually people watching rather than just number of homes they are in), and an unlimited earning potential. Ultimately the desire for bigger profits will drive content owners on to the platform.
I don't have any evidence but I think Google will build a GoogleTV box based on their existing Google TV devices but on Motorola hardware.
Once they have content on Youtube, and the hardware to easily view it on, they move cord cutting from something that people who are early adopters with some technical skills do, too a mainstream trend. At that point the content will start to move quickly as well.
If I was Comcast or Time Warner I would be doing a deal with Google. I think it is the best chance to maximize value for their shareholders in the long run. Cable companies will either become internet providers or they will become content producers. Or both. Cord cutting will result in lost subs, Googles superior reporting to advertisers will see advertisers shifting to GoogleTV, and the social elements Google will be able to incorporate will be a huge draw card for sports and other real time events.
At the same time competition for rights fees is higher than ever, particularly in sports. So cable companies are squeezed on both sides.
If they partner with Google and start dropping Google boxes into peoples homes they give Google what it wants and perhaps protect their legacy business a while longer. Google wants a presence in as many living rooms as it can get. Aggregated and specific data on what people are watching so it can tailor advertising to them. The years of experience that the Cable Companies have in delivering a TV service would be valuable to Google and their customer support infrastructure would provide a piece of the puzzle that I am not sure Google is addressing or interested in addressing.
If the Cable Companies do not partner my money will be on Google to come out ahead and cable TV to eventually disappear as a service. I give it two years before the Google effect really starts to kick in. In the mean time expect Google to get aggressive in the field of negotiating on sports rights and all sorts of other content rights.
They have a compelling argument for content owners. The existing model has the content owners capped to whatever rights fees they can negotiate with the carriers who are in turn capped by their subs and eyeballs. On the other hand Google can bring a potentially worldwide viewing audience, better quantified value numbers (actually people watching rather than just number of homes they are in), and an unlimited earning potential. Ultimately the desire for bigger profits will drive content owners on to the platform.
I don't have any evidence but I think Google will build a GoogleTV box based on their existing Google TV devices but on Motorola hardware.
Once they have content on Youtube, and the hardware to easily view it on, they move cord cutting from something that people who are early adopters with some technical skills do, too a mainstream trend. At that point the content will start to move quickly as well.
If I was Comcast or Time Warner I would be doing a deal with Google. I think it is the best chance to maximize value for their shareholders in the long run. Cable companies will either become internet providers or they will become content producers. Or both. Cord cutting will result in lost subs, Googles superior reporting to advertisers will see advertisers shifting to GoogleTV, and the social elements Google will be able to incorporate will be a huge draw card for sports and other real time events.
At the same time competition for rights fees is higher than ever, particularly in sports. So cable companies are squeezed on both sides.
If they partner with Google and start dropping Google boxes into peoples homes they give Google what it wants and perhaps protect their legacy business a while longer. Google wants a presence in as many living rooms as it can get. Aggregated and specific data on what people are watching so it can tailor advertising to them. The years of experience that the Cable Companies have in delivering a TV service would be valuable to Google and their customer support infrastructure would provide a piece of the puzzle that I am not sure Google is addressing or interested in addressing.
If the Cable Companies do not partner my money will be on Google to come out ahead and cable TV to eventually disappear as a service. I give it two years before the Google effect really starts to kick in. In the mean time expect Google to get aggressive in the field of negotiating on sports rights and all sorts of other content rights.
They want to be in the living room with you when you decouple from the web for 5 or so hours each day.
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