Eric Schmidt, Executive Chairman of Google said on Saturday that Google is “absolutely committed” to its fledgling television business and expects many more partners to join it soon. Schmidt made this comment at the Edinburgh television festival. Google TV allows viewers to incorporate Web and television content on their TVs through a browser.
It hasn’t, however, received a good response and has even been blocked by premier U.S. networks after its launch in October. Schmidt attributes this lukewarm response due to the fact that this feature involves televisions, which a normal consumer doesn’t change often, just once in six to seven years. Currently, Sony and computer accessory giant Logitech are Google partners for GoogleTV. He also said that announcements will come shortly regarding partnerships for the next version.
Google wishes to now expand its behemoth online advertising business, amounting to nearly $28 billion, to the small screen, where a major share of advertising money is spent. Google purchased YouTube, the largest and most popular online video website in 2006, but has not revealed any profits from it.
Google is expected to expand Google TV in Europe next year. Schmidt also revealed in a key note address that Google is still to resolve its issues with major networks such as ABC, CBS, and NBC. He is optimistic that the company won’t encounter these issues for its British launch, adding that Google was already in talks with broadcasters in UK.
The major reason why television industry is concerned with Google TV is that they fear Google will steal its advertising revenues, as with other industries on Internet. Google has tried to assuage such concerns by asserting that the Internet will expand the advertising market by better penetration and knowledge of the consumer which will make companies spend more on advertising. After completing its $12.5 billion acquisition of Motorola, Google is expected to gain valuable perception of U.S. viewership.
Ironically, Motorola’s set top box business is the biggest in the world, and is closely connected with cable companies. Google has refused to give details regarding the working of the mergers, but said that Motorola and its set top box business will have a great degree of independence in their working, but added that there obviously will be a certain degree of sharing.
Schmidt also commented on the current unrest in the United Kingdom, and that it will be wrong on the part of British Prime Minister David Cameron to put clamps on online communications. Such measures were criticized during the Jasmine revolution and Arab uprising. He commented that the Internet is just a reflection, not the cause of the problem.
