We have been told by our resources that Google has its eyes focused on starting paid cable-TV service. One proof is the hiring of an ex cable-TV executive, Jeremy Stern, by Google who is talking to media companies for their video services on Google’s network. Discussions with “Times Warner Inc., Walt Disney Co., and Discovery Communications Inc.” have been initiated but no final word has come to our spy ears yet.
Google has pondered about the ways to upgrade its current project of broadband in the Kansas City as well as the company has plans to offer TV software which will let you search videos on the web and in the TV stations
Google has been thinking about a move into TV for many years, says Keval Desai, a former Google product director who is now a venture capitalist at InterWest Partners LLC.
“TV is built on a closed system, which is why traditional cable and satellite operators are the only place where consumers can get ESPN and other channels,” he said. As more TVs become connected to the Web, he said, “Internet companies like Google will be able to give you that same high-quality content,” possibly at lower prices.
Television harvests more than $150B a year in the U.S. from advertisers and consumers paying monthly fees. Google is the biggest ads seller on the Web, now it wants to snare a share of the TV ad dollars. And there’s likelihood that Google with its latest plans may undercut the subscription fee that satellite and cable service charge from their customers.