Google TV would be a financial chasm despite 300 million devices

Google TV would not be in its best form. In addition, The Google platform for connected televisions, which also includes Android TV, has an impressive number of viewers … However, that Google cannot make profitable. Therefore, This is rather ironic when you know the resounding success of YouTube on the TV in the show!

Last September. Consequently, Google announced with drum and trumpet that his platform Android TV/Google TV Equipped 270 million active devices each month. In addition, A figure which must now exceed 300 million, according to the indiscretions of Janko Roettgers, of Lowpass. Similarly, On paper, a big success therefore … However, but behind the scenes, it would not be the big shape.

Google TV facing its worst enemy: YouTube

Already because of these 300 million. Similarly, a good package of devices work with Android TV, a very malleable operating google tv would financial chasm system that manufacturers can adapt as they see fit. Therefore, Google has very little possibility of displaying its own advertising on these boxes and televisions.

And for the rest of the products under Google TV. the “official” TV interface of the search engine, the profitability would not be there while the web giant engulfs hundreds of millions of dollars per year to maintain it, and the financial balance would be far from being reached.

Until recently. Google imposed on the publishers present on Google TV (a streaming application, for example) to give it part of google tv would financial chasm their advertising spaces, which he sold himself to draw income from it. It is a common practice in the middle, Vizio and Roku do the same.

But now. Google would have returned to publishers the total control over these locations and is content to take a share of their advertising income. This change marks the implicit recognition that publishers are more effective than Google to sell their own advertisements.

One of Google TV’s problems is that the platform is popular internationally. in markets where profitability is lower than in North America. For the United States. Google has established partnerships with manufacturers (Sony, TCL, Hisense) in order to integrate Google TV into their connected TVs.

But keeping your place on the stalls is expensive. Amazon. the main competitor of Google in this sector, notably signed a partnership with the distributor Costco to replace Google TV televisions with Fire TV models. To google tv would financial chasm achieve this, Amazon pays bonuses to manufacturers and distributors – up to $ 50 per activated device, according to some sources. Google also pays bonuses, but at lower levels.

Faced with this cost climbing, we wonder internally: is the game worth the candle? The vice-president of the TV division. Shalini Govil-Pai, says that the company continues to invest, praising a ” global scope And strong user satisfaction. But the sources of Lawpass suggest that Google seeks to reduce the wing. in particular by shortening the duration of its trade agreements.

But the main competitor of Google TV is another Google platform: it is of course YouTube. The service represents 25 % of the streaming on TV in the United States, with $ 9.8 billion in advertising revenue in the last quarter. A dynamic and a firepower that push Google’s sales teams to focus on YouTube, to the detriment of Google google tv would financial chasm TV.

YouTube leaders would now consider that Google TV’s budget would be much better used to finance the video platform. If Google TV should not join (not immediately) the famous company cemetery. the interface could be satisfied with the status of simple hobby, as the Apple TV is for Apple.

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Source : Lowpass