Around the Net

Google's Web-TV Encounters Content Roadblocks

No one ever said Web TV was going to be easy.

Late this week, ABC, CBS and NBC began blocking their content from streaming on Google's new Web-TV service.

Clearly, writes The Wall Street Journal, the issue is "exposing the rift that remains between the technology giant and some of the media companies it wants to supply content for its new products."

As of Thursday night, Reuters reported that Google was actively negotiating with the three networks to regain access to their content, while Fox was considering blocking Google, too.

Why aren't the networks cooperating with Google?

"The row is basically over revenue," writes Fast Company. "The TV giants doubt that Google's entertainment service will enable their shows to generate the big bucks that they did, say, five years ago."

As The Journal notes, media companies remain "skeptical that Google can provide a business model that would compensate them for potentially cannibalizing existing broadcast businesses." (Though, we're not sure how handicapping Google TV is going to help its business model.)

As Gartner analyst Van Baker tells Reuters, the networks are simply afraid of Google, and its unbridled influence over online advertising.

"Everybody knows the lock that Google has on Internet traffic in terms of advertising," Baker tells Reuters. "If you take that model and you extend it to television, suddenly Google's power becomes enormous in the advertising space."

"Presumably, the networks want something from Google, though exactly what isn't clear," writes Search Engine Land's Danny Sullivan. "As Google doesn't alter their ads, they continue to benefit directly from the viewers the service sends to them, in the same way they benefit from those using computers. However, they may fear that some type of ad substitution might come, or that down the line, Google might place additional ads around their content. If so, they'd likely want some type of protection or a slice of any revenues generated."

Also, though it seems almost beside the point, some media companies, including Disney and NBC, have also expressed concerned about Google's stance on Web sites that offer pirated content, sources tell The Journal.

Read the whole story at Wall Street Journal et al. »

Next story loading loading..