Commentary

A Review of Google TV Interface, Advertising, Distribution

So I have had a few days to play with Logitech Revue and the new Sony Blue-ray player, both powered by Google TV, and one thing is very clear. It could be debated that Google TV is a "game changer," but it is most certainly a "catalyst for game change." I have seen and even worked on some of its game-changing predecessors like AOLTV and ZillionTV. The main difference here is that the consumer can walk into Best Buy today, set it up fairly easily today, and it works very well. Today.

Set-up was straight-forward, but it still took half an hour because I had to manually enter my TV make/model, cable box make/model and router information. It makes sense one has to do this, since the box works "with" these devices, but clearly there is room for setup assistance from Best Buy, another third party, or dare I say someday an integrated MSO box.

Next is the interface, which after a few minutes is easy to understand; it is in line with the familiar Google interface millions use every day. The ability to hit the Search key, type in a TV program via the supplied keyboard, and arrive at a list of all available permutations of that show is powerful.

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For instance, type in a show, and it will list a video link to setting your DVR to record the next full TV episode, links to archive full episodes on the ad-supported Web site, and links to Amazon to buy the program pay-per-view. Or go to Applications to watch video there (more on this below). Also nice for the consumer is the What's On section, which lists programs by genre first, then by channel/platform.

Then there is content.

Cable vets HBO, CNBC and Turner (Adult Swim, Cartoon, and CNN) continue to innovate and have Applications, that is, navigation and programming optimized for TV remote controls and viewing. CNBC Real-Time allows users to track stocks and access news feeds while watching financial news from CNBC. HBO GO has full length Movies and Series available, while Turner has clips from popular programs.

As for the business model: CNBC has TV spots from the linear feed. HBO is utilizing TV Anywhere authorization. Turner does not have either and has no banners and pre-roll ads yet, but TV Anywhere or ads can't be far behind.

There is, of course, the much-publicized absence of broadcast networks. I agree with Marc Cuban who wrote: "I personally can't think of anything stupider for the big broadcast networks to do than give their shows to Google... because they are finally getting billions of dollars in retransmission fees from their distributors". However, they should want to play at some point for the promotional value alone.

The real showstoppers here are the Applications from the independent professional broadband video channels, such as The Onion, CHOW and CNET. All have been optimized for Google TV viewing, and all have the ability to play out on-demand or flow from video to video in linear fashion. It is easy to see how soon many comedy consumers will "Watch TV" on The Onion or Funny or Die sites and not on Comedy Central. No TV Anywhere authorization issues here; the pre-roll ads are limited now, but sure to come. Then there is You Tube, which has looked great on AppleTV and does the same here, with overlay ads and all.

I agree with Bill Niemeyer who wrote that Twitter and NBA also have outstanding showings, and there is Netflix, with its intuitive navigation and 20% of Internet traffic in prime time, and Amazon pay-per-view.

So while many will say dedicated programming is limited, and I agree, there is plenty to get started with here. All in all, this is a very good version 1.0 showing out of the box.

There are huge business issues, both on distribution and ad sales for organizations to deal with, too many to innumerate here. In addition, many creative and interface issues need to be worked out for programmers who think their Web page will suffice. However, because this product is here and works, it's a catalyst for groups to talk about change today. Some will make it happen today rather than tomorrow.

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