Why Google is lying to TV Companies

2 min read

Google LogoGoogle recently said it can’t do internet television because of inherent technical restrictions, while at the same time asking to partner with cable companies over video advertising. Is Google just tricking TV companies into a false sense of security while it slowly slips onto our TV sets?

Google’s head of TV technology, Vincent Dureau, recently said the following about TV over the internet:

“The Web infrastructure, and even Google’s [infrastructure] doesn’t scale. It’s not going to offer the quality of service that consumers expect”

Well I’d have to disagree, while the current infrastructure can’t support broadcast quality video on a large scale that is cost effective, it is simply a technology issue that is being tackled at an alarming rate.

Less than 10 years ago it wasn’t scalable to deliver even radio over the internet. Now delivering radio over the internet is an everyday thing, and internet radio is now being included as an option in Wi-Fi portable media devices.

So yes Google and the web can’t scale video today, but tomorrow it can. Within ten years we’ll think of delivering video over the internet as being just as easy as delivering radio over the net now. P2P technology is only going to make this easier. It’s not going to happen in the next 2 years, but it will happen within the next decade, maybe within even 5 years.

Why is Google saying this negative statement about Internet Video:

  • To reduce investment in web video/TV startups because Google wants to dominate the field itself and keep YouTube at the top.
  • Google wants other TV related companies to overlook investing resources into IPTV to make it easier for itself in future.
  • It wants TV companies to feel less threatened by Google’s presence in the TV industry so they are less likely to sue YouTube and Google Video over vopyright violations.
  • To make Google look like it can’t be a competitor in the TV industry because of inherent technical restrictions. This means TV companies are more likely to work with Google if it is not a potential competitor.

What Google is really Saying:

“Now that you know we can’t do TV, does any TV company want to license our video search technology or use our video advertising services? We won’t compete with you further down the line because we don’t have the technology!”

In fact Google actually said that it will to work together with cable operators to combine its technology for searching for video and TV footage and its tailored advertising with the cable networks’ high-quality delivery of shows. In other words Google wants to cash in on TV advertising real estate.

What about the companies entering the IPTV industry?

Are telcos entering the IPTV industry worried about technology and infrastructure, not really, they are more concerned with acquiring content and marketing. The telcos seem certain that within the next decade (possibly 5 years) that there will be adequate infrastructure to cope with TV over the internet, even in HD.

To sum it up

Google just wants to get into the TV industry and it is just giving itself some breathing space and partnership opportunities by pretending it can’t due to a technical restraint.

The TV companies beleive Google and are prepared to work with the company on advertising opportunities. Then when TV companies become more reliant on Google’s TV advertising model it will have them by the balls while it slowly slips further into the TV industry. 

[Thanks Zatz not Funny for bringing this to my attention]

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