Google (GOOG) has been rumored to be getting in the television game for quite some time. In reality, it already is. Google's YouTube purchase back in 2006 turned it into the largest video distribution outlet on the planet, and in many ways YouTube bypasses traditional media outlets and networks to connect content producers and consumers easily with very little (to no) cost. But, that's not enough. Google needs to encroach on the 50-inch flat screen television instead of being relegated to squinting eyes needed on a laptop screen.Sure, Google is quite a bit over its year-ago share price of $400, and has been doing all the right things in the mobile space so that Apple's (AAPL) death grip on the wireless smartphone doesn't get any larger. But Google TV?
If it can bring anywhere near the same content experience as the large cable networks (using targeting searching by consumers, for example), that revenue stream could finally be the one that supplements its all-eggs-in-one-basket revenue stream that now comes from internet search (every other stream is trivial). Google may be able to approach that lofty $700 level from back in 2007. Sure, it will supply ads on whatever it creates as a Google TV service, but in a helpful, non-intrusive, targeted way that consumers will actually enjoy.
All of this will run on Google's freely-available Android operating system, which could bring "apps" to the living room screen as well. One could talk about consuming, starting and stopping content across Google's ecosystem (from phone to television to laptop) if Google can pull an Apple and bootstrap content to as many screens as possible. Maybe a $700 share price may not be too hard of a ceiling to bust again. If you own GOOG, are you staying put in your positions?
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Reader Comments (Page 1 of 1)
5-04-2010 @ 2:57PM
Rosario Elliot said...
I think this has the potential to replace cable services. However the cost will be the same, the interface and content will change. We will still be paying the same, if not greater costs as most of the content they will distribute will be pay. We should look at systems like this http://www.whitehatt.com - they connect you with all the content, no per viewing fee's, this is what the future looks like.