Wednesday, May 26, 2010

Trendspotting: Investing in Smart TV

The long-awaited convergence of Internet and television is upon us. Google (GOOG) says so.

Okay, we’ve been hearing that one since Sergei Brin was sucking on a Zwieback cookie. But all the same, Google TV, which was announced last week and is expected to be available by fall, might actually work. If it does, it will become part of our daily lives, unlike the many earlier attempts -- by Microsoft (MSFT) and Apple (AAPL) among others -- that were doomed to become little more than niche products.

Why would Google succeed where so many others, who aren't exactly dopes after all, have failed?

Partly because Google has got its priorities straight. Google TV is a natural extension of the company’s primary business, which is delivering targeted advertising. It's leaving both the content and the hardware to others.

Google’s not trying to create a cool new gadget that geeks will love and the rest of us will reluctantly learn to live with. Or not: In the earlier efforts, the actual content was secondary in nature and limited in scope, and thus pretty easy to live without.

Here, the promise is a clean merger of Internet and television, using nothing more or less than the interface and functionality that's become familiar and effortless to users of both devices. At least that’s what Google promised to deliver, and that’s certainly what the media audience heard.

So what is this thing, Google TV? As described, it’s simply Google search, but it collects matches to your queries across television programming as well as the Internet. And it uses the Google Chrome browser, so you can channel surf.

So, it’s a kind of online television and Internet guide that delivers one-click access to any programming from either source. If you’re obsessed with the Lost season finale, you can choose to watch it on television, or see a parody of it, or a rerun of an old episode, or discuss it on a blog, or see a recent interview with one of its stars.

God help us, there will be millions upon millions of channels out there, and they’re all going to be on at once.

With this project, Google is acknowledging the plain fact that television programming might seem like a business on the decline, but television viewing is one amazingly sticky habit, not least because it's absolutely not interactive, and therefore is effortless.

As noted in the company’s presentation, Americans spend five hours a day watching television, and advertisers spend $70 billion a year in the US alone to reach them. The worldwide audience is about 4 billion, and that’s about four times the number of personal-computer users out there and twice the number of mobile-phone users.

more info :-http://www.minyanville.com/investing/articles/google-tv-smart-tv-google-google/5/26/2010/id/28487

No comments:

Post a Comment