Google is holding this week its I/O conference for developers in San Francisco. Various developments in the software business were announced, as well as a small takeover (SimplifyMedia, an Android application for streaming music). For consumers and the telecom sector, the unveiling of Google TV was the big news.
The New York Times reported already in March that Google, in addition to the computer and mobile, was looking to move into the TV business. Its partners were leaked then as well: Intel (with its Atom CE4100 processor), Sony and Logitech (for the hardware). The Google TV software is based on the Android operating system (verison 2.1, not the latest 2.2) and includes the Chrome browser. The hardware, which will be out in the autumn in the US, will include TVs, set-top boxes, remote controls and keyboards. The product focuses primarily on bringing online video content to the biggest and best screen in the home: the television. Sony will offer a TV, with the software built in, as well as a Blu-ray player. Logitech will offer a set-top box solution. The retail chain Best Buy and satellite TV provider Dish are Google's partners for the US market.
We recently wrote about similar developments at Comcast and Liberty Global (see our Background article 'Comcast and UPC can learn something from each other') and at Panasonic (see our commentary 'Time's running out for operators that want to profit from OTT'). It should be clear that Google is one to keep track of in the over-the-top (OTT) market. In the US the company is working with Dish, and the group says that Google TV can work with any operator, but there is a chance that as a result of Google (just as with the Panasonic televisions) operators will be pushed out of the game.
As part of their strategic alliance, Sony and Google plan to develop together hardware based on Android for the 'home' as well as 'mobile' and 'personal'. Does that mean a new smartphone? Or an iPad look-alike? Mobile hardware aside, Sony is making a good decision to leave the choice to the consumer: the 'Sony Internet TV' comes in two versions: a TV with built-in software and a box (with built-in Blu-ray player).
The conclusion is the same as in our commentary on Panasonic: time is running out for operators, especially as strong brands such as Google and Sony move in on the OTT market. There is one party that will benefit whatever happens from OTT, as it's in on all the developments (Panasonic, Sony, Logitech): Intel, with its powerful CE4100 processor that makes it all possible to access so much content at the same time, quickly and for high-quality consumption.
