Connected TV: Why Google will succeed where others have failed

By Gannon Hall

According to Steve Jobs, there's no viable path to market for new TV platforms. The problem, as Jobs discussed on stage at the All Things Digital D8 Conference this June, is that people won't pay for a set-top box when they get one for free from their cable operator. Jobs asserts that the only way to be successful is to start from scratch, build a great experience and deliver it to the consumer in a way that they are willing to pay for--an impossible task in an essentially cable subsidized industry.

Google however, is choosing to take a completely different approach--one that will likely pay off. Whereas Apple is heavily focused on controlling the entire ecosystem and experience, from hardware to software, Google, as exemplified by their Android handset strategy, is all about partnering with hardware providers. The first television to run on the Google TV platform is due to be released by Sony in the fall.

Sony, a once great electronics company whose market share has been eroded on multiple fronts by competition and market dynamics over the past several years, desperately needs a hit. And Google TV, much more so than 3D TV in my opinion, may be just what the manufacturer needs to ignite a real turnaround.

Furthermore, the Sony partnership paves the way for Google to deliver its TV platform to consumers in a way they'll be willing to pay for it--a new TV--directly addressing Jobs' key concern of go-to-market viability. Provided the launch is successful, one can only assume that other TV makers will rush to market with competing Google TV sets.

While having the platform baked into TVs will be vital to the its success, I believe the main reason that Google TV will succeed where others haven't is the fundamental difference in their approach--Google TV will be the television experience. It won't be a separate or alternate input to the primary TV viewing experience (like Apple TV, Boxee, Vudu or Roku). Nor will it be limited to standard cable/satellite content delivered through a better DVR (like Tivo).

Forrester analyst James McQuivey perhaps put it best when he described Google TV as "a persistent interface that resides on your TV, giving you access to search functions (searching linear programming, web video, and even the general Web to get IMDB facts or background on the season finale of Glee) any time you're watching TV, not just when you switch the input."

As recently pointed out in the Wall Street Journal, Google's biggest challenge in realizing the full revenue potential of their TV platform is convincing content owners that they can provide new business models that will supplement, rather than cannibalize, existing broadcast revenue. Despite the initial and unsurprising skepticism of TV networks, I believe they will, with caution, slowly adopt new monetization models offered by the new platform. Assuming the platform is a success with consumers, Google TV, like any good operating system, will evolve over time, offering enhanced features for consumers and new revenue opportunities for broadcasters and publishers as the platform matures.

In conclusion, by partnering with leading consumer electronics manufacturers and taking a bolder, more complete and immersive approach to the connected TV experience, Google is poised to reach and engage the millions of viewers who spend over 4 hours a day watching TV, and by extension tap into the $70 billion dollar broadcast advertising market. For Google, this is clearly much more than a hobby.

As COO of Kyte, Gannon Hall leads Kyte’s overall product strategy, marketing, business development and operations. He began his career as a software engineer, user experience designer, web developer and consultant.