Google TV

Citing the obligatory “people familiar with the matter”, the Wall Street Journal in a story this morning reports that Google is finalizing contracts for upcoming YouTube channels that will stream premium entertainment content on a regular basis. Google CEO Larry Page apparently wants to give people a good reason to tune into YouTube instead of television. Content owners are being “encouraged” to create schedules of programming much like traditional TV, the paper noted.

YouTube has requested some content for the channels within the next 60 days, according to one of these people, as it considers a launch in early 2012. YouTube, which media companies have long griped is too stingy cutting content deals, is paying from a few hundred thousand dollars to several million to content creators to create and curate videos for a channel, according to these people. Google recoups the original payment through ad revenue, and Google and the partner share ad revenue after that.

This could be viewed as part of Google’s broader push towards providing high-quality Hollywood entertainment on YouTube. The timely strategy ties nicely with the Google TV project, which is also about to be updated with a new software release soon. The Wall Street Journal first reported on Google’s plans to spend a hundred million dollars on premium YouTube content back in April. Google is reportedly in talks with Creative Artists Agency, William Morris Endeavor and International Creative Management over professionally produced programming on broad themes, including arts, fashion and sports.

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Back in April, the Wall Street Journal reported that Google was spending a hundred million dollars to commission premium YouTube content from the likes of Creative Artists Agency, William Morris Endeavor and International Creative Management, to name a few. But the search monster’s agenda is likely much, much bigger, per research note issued to clients by William Blair & Company. The research firm believes that “Google is silently buying/licensing hundreds of millions of dollars of professional Hollywood content”. Think $100-$200 million for rights to premium Hollywood content:

Google has the resources and infrastructure to be a big player in Hollywood content. Becoming a major player in the premium-content industry requires a com- bination of capital and technology resources that few have. Google fits the bill, how- ever, with $39 billion in cash, annual free cash flow of $9.4 billion, Android, Chrome, YouTube, Google TV, the world’s largest advertising platform, and Motorola Mobility’s set-top-box business. Lastly, Google has made several key Hollywood hires over the past year to understand content rights.

Hollywood studios could consider going to bed with Google should it subsidize their wholesale fees and at least partially monetize the movies through advertising. Consumers would be given the choice of either watching a pricier, ad-free version or rent ad-supported titles for a lower fee. Stakes are high in this game. The market is worth an estimated $65 billion and just advertising on digital home entertainment is a billion dollar business (see the table after the break).

Google, of course, is facing fierce competition from the likes of Apple, Amazon, Netflix, Hulu, in addition to traditional retailers such as Best Buy (CinemaNow) and Wal-Mart (Vudu). Weighing in on Amazon, Google and Apple, William Blair summed it up nicely:

We believe Amazon’s digital agenda is to gain Prime customers, Apple’s strategy is to sell devices, and Google’s focus is to build a bigger ad footprint.

Now, if Google has in fact been quietly licensing studio content left and right, prudent watchers should expect a splashy announcement alongside GoogleTV 2.0, which is due end of summer, as in any day now. If Google can leverage their pending Motorola acquisition, which makes millions of set-top boxes for other IPTV players, Google could quickly establish an end-to-end Hollywood entertainment delivery platform that even Apple might find difficult to crack. In all, Google has likely found its new $65 billion market, the research note reasons:

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Engadget has posted Sony showing off an updated Google TV set-top box running Honeycomb. We’ve been expecting Honeycomb to hit the platform all summer after seeing it leak, but this demo shows a much more stable version ready for release. As you can see above, Android apps are running on a Google TV.

Last month, Google released the SDK for developers to begin optimizing apps for bigger television screens. Apps have seem to been Google TV’s number one requested feature, which would give the platform a lot more functionality. We’re hopping this hits as soon as possible! Read more at Engadget

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AllThingsD is reporting that along with Amazon, Yahoo, and Dish Network, Google has made a bid for the free video streaming service Hulu. AllThingsD doesn’t provide any details quite yet, but we can imagine Google’s bid is in the range of $1.5 – $2 billion — just like the other three companies are offering. AllThingsD can’t confirm if Google has made a definitive bid, or is just offering a sum of money.

Google chariman Eric Schmidt said at a conference in Europe last month that Google isn’t ready to give up on Google TV. He cites possible Google TV downfall is due to the scarce amount of set-top boxes rather than full television sets.

The acquisition of Hulu would sure be a break through for Google TV. Currently, almost every large television network is blocking streaming to Google TV, making the content lineup almost non-existent. With Hulu and its partners, Google could open up a whole new realm of content to the service.

AllThingsD has indictated that Google has made clear to Hulu that they are ready to offer a large sum of cash for the product, and we know they’re not scared to do it. Hulu isn’t exactly sure what their stance is on selling quite yet, but we’re sure to hear more in the coming weeks.

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Reuters is reporting that during the Edinburgh television festival, Eric Schmidt said Google is bringing on more partners to help expand their Google TV platform. Schmidt explained the company’s commitment to the platform, and that bring on more manufacturers would solve problems.

Schmidt sourced the scant availability of a set-top box version to be the reason why Google TV isn’t selling well. He said at the moment, Google TV is designed into televisions, which consumers replace around every 5 years. What about the Logitech Revue, Mr. Schmidt?

Along with new partners, Schmidt said Friday that Google TV would make its way to Europe in the next six months. It looks like Schmidt, and company, are committed to improving Google TV for the long haul.

Honeycomb ported to the Logitech Revue 

Google has announced the release of the Android SDK add-on for Google TV. This SDK will allow developers to begin to build/optimize their apps for larger displayes, and more importantly emulate Google TV to see how the apps look on the big screen. As seen above, Honeycomb has already been ported to the Logitech Revue — making us very excited.

Along with the SDK add-on, Google has released a few UI Guidelines. Google says some apps will work, while some might need tweaking:

Depending on the design and use case, an existing Android app may work well on Google TV as is, or it may require fixes. With the add-on you can test your apps to determine if they would be a good fit for TV and whether any tweaks are required.

There’s no word on when Honeycomb will hit Google TV, but this SDK release and the I/O promise of “late sumer” sure makes it sound like it will be soon. Google says the initial number of app available on Google TV will be small, but we’re certainly looking forward to it nonetheless.

While we’re not quite sure how they did it, the boys from GTVhacker have ported Honeycomb to their Google TV. Photographed above is Honeycomb running on a $99 Logitech Revue, where you can see the Market is now available. In their forum post, user zenofex says they’ll have more information in the next few days. Also discovered — Google TVs are now showing up in device listings on the Market website (photo after the break). We’ll let you know when there is more information.

As you may know from our twitter, we now have a way to run Honeycomb (Android 3.1) on ANY Logitech Revue. Heres a screenshot of the market/dashboard, we’ll have more info in the next few days.

New update includes:
Adbd
Android Market
Improved Media Player

via Phandroid

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It is no secret that Google TV failed to hit the ground running as the notion of having to buy another box for their TVs fell on deaf ear with the general public. It is no surprise then to find out that Google TV boxes are not selling very well, just like the Apple TV (picture below). What we didn’t know is how bad the situation is for the search giant’s pet project. TIMN points at a prepared statement from Logitech, the maker of Google TV-powered Revue box, in which the company acknowledged “very modest sales” of the product in the June quarter:

Sales of Logitech Revue were slightly negative during the quarter, as returns of the product were higher than the very modest sales. We believe the significantly lower everyday price for Logitech Revue, reduced from $249 to $99, will generate improved sales.

Google on its part will update the Google TV project with Honeycomb code later this summer, adding the ability to download and run apps on your television. But despite the aggressive price cut which will cost Logitech $34 million in one-time charges and the fact that the Revue now price-matches the $99 Apple TV, ordinary consumers will still be avoiding set-top boxes in droves, regardless of a brand.

Apple on its part could tackle the market with a rumored full-blown television set with the Apple TV functionality built-in. Apple’s op-chief Tim Cook recently in a conference call with Wall Street analysts re-iterrated Apple’s stance that the Apple TV box remains “a hobby” for the company. The comment jibes with Steve Jobs’s argument from the Wall Street Journal’s D8 conference last year when he said set-top box makers like Apple and Google faced a go-to market problem, calling the television market “balkanized” (full quote and video below the fold).

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