Google Considering Television

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The internet giant Google is considering adding television to their business. With Google already leading the way in internet services, it is no surprise that television is on the horizon. SAM SCHECHNER And AMIR EFRATI of The Wall Street Journal discuss further in their article Google Ponders Pay-TV Business:

Internet giant Google Inc. is considering a plan to offer paid cable-TV services to consumers, a move that could unleash a new wave of competition within the traditional TV business.

Google has looked at ways to expand a previously announced project to build a high-speed Internet service in Kansas City, Mo., and Kansas City, Kan., adding video and phone service in a mirror of offerings from cable and telecom companies, according to people briefed on its plans. As a result, Google has discussed distributing major TV channels from companies like Walt Disney Co., Time Warner Inc. and Discovery Communications Inc. as part of the video service, though the discussions were exploratory and no final decisions have been made.

In September Google hired a former cable-TV executive, Jeremy Stern, who is spearheading talks with media companies, some of the people briefed on the plans said. A Google spokesman said the company doesn't comment on rumor or speculation. Spokespeople for Disney, Time Warner and Discovery declined to comment.

The discussions underscore the intensifying battle for control of the TV set. In recent years phone companies have jumped into a market previously dominated by cable-TV operators and satellite-TV providers. Now companies such as Amazon.com Inc. are bulking up their content offerings, while Apple Inc. and others are trying to reinvent the viewing experience with iPads and other devices, and potentially a new type of television set.

Meanwhile, Comcast Corp. and other incumbent cable and satellite operators are fighting back, creating their own apps and lining up Internet-rights to programs that tie into their existing offline TV subscriptions.

Much is at stake. Television reaps more than $150 billion per year in the U.S. from advertisers and consumers paying monthly fees. Google, the biggest seller of ads on the Web, wants to snare a share of the TV ad dollars. And with its latest plan, Google threatens to undercut cable and satellite companies in subscription fees it may charge consumers.

Read more at The Wall Street Journal