For most companies, it's not easy to get a piece of the American TV industry.

Source: Internet
Author: User
Keywords Google
Tags american television android apple bundled channel channel providers consumers content

According to foreign media reports, for most companies, it is not easy to get a piece of the American television industry. But Google has never given up on its efforts to move into the television industry, and is trying to promote Google TV by offering channels for content.

It may be the most serious challenge for the TV market to get the best content support. Satellite television and cable companies have the most popular programme content resources in the American television industry, which provide television content services to some 100 million families across the United States in a channel-bundled mode. The sales model is profitable for channel providers because users often pay for channels they never watch. Meanwhile, TV companies that control content are reluctant to sell too much content to Google or Apple because of concerns about damaging the sales model.

However, Google is using its cash advantage to get through the Hollywood program content channel. Google has just spent more than $100 million to set up its own online TV channel, and has made every effort to Ashton Kutcher, Jay and Tony Hawk, and other stars to record original content.

Google's upfront investment may not be enough to lure a large number of pay-TV subscribers to its content platform. But Google now has 43 billion of dollars in cash and its own debt is only 4 billion dollars, so once the decision to open up the U.S. television industry market, the company has the ability to spend several times the upfront investment funds to build their content product portfolio. And the traditional TV content provider is also very difficult to resist Google's money offensive.

Google's investment will enrich online program content resources, enabling it to rival traditional media. In the music world, the new songs from Justin Bieber, kreayshawn and karmin have already caused a stir on the internet before the release of the album. Bieber

Other purposes of Google's exploration of the US television market seem more covert: Google wants to make its software the industry standard for a new generation of TVs, including Internet access standards. Google plans to install its own developed operating system into a Google TV called Smart TV. The move is likely to boost Internet video browsing dramatically, as Google TV users can switch between cable TV, DVDs, Google's YouTube, and Netflix, the Internet's video content provider. Apple TV also provides users with services such as watching itunes movies, streaming Netflix or YouTube videos, browsing photos and listening to music.

However, the market has not shown enough interest in Google TV. Google TV accounts for less than 1% of America's smart-TV market, according to Strategy Analytics, a market research institute. This is similar to Google's Android operating system just a few encounters. Android's market share of smartphone operating systems was only 2% in the fourth quarter of 2008, but it has now risen to 56%. The main reason is that Google, with its rich resources, makes smartphone makers believe Android can rival Apple's iOS. In the smart-TV market, a similar scenario will be staged.

Still, most American consumers will not consider Google TV until they need to buy a new TV, which will make it hard to guarantee a big boost to Google TV's sales. Spencer Wang, an analyst at Credit Suisse, points out that consumers will generally opt for a new smartphone after two years, but an average of seven years is needed to replace the existing TV set.

After acquiring Motorola Mobility, Google will also have its own set-top box manufacturer. Yet it is unclear what Google plans to do with its set-top box business.

Despite some hopeful signs of growth, Google still has a long way to go in the television industry. According to comscore, a market research firm, Google's video content site, which has 161 million independent visits in September this year, has a 378-minute view of YouTube video content. In stark contrast, Americans watch regular TV programs for more than 100 hours per month, duration.

The most effective way for Google to make up for this huge gap is to spend huge sums to buy what consumers like, but sadly this may be against the will of investors.

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