Commentary
Google, Microsoft Race To Dominate Live TV, Internet Connections
- by Laurie Sullivan , Staff Writer @lauriesullivan, January 11, 2013
A recently granted Google patent describes technologies and systems for the distribution of advertisements through Internet television devices and television advertisement broadcasts.
Microsoft made the trend more apparent Thursday after confirming that it acquired the home-entertainment technology startup id8 Group R2 Studios, whose founder Blake Krikorian has been working on a home-media and automation technology.
As the Xbox division works to strengthen its entertainment services, messages will appear as traditional paid-search ads, but also content. Granted, first tech companies need to improve the connection between the Internet and broadcast TV. Most of the problem has involved integrating live TV. Internet services like Google TV and Xbox 360 don't carry live TV and most people, including myself, don't want a set-top box.
Imagine each show or broadcast network having its own app with the ability to watch live content as it airs on network television.
Once Internet services connect with live broadcast TV, the rules will change for search engine marketing and digital advertising. It's one reason why image-based ads, such as Google product listing ads or Amazon image ads, will produce a better click-through and conversion rate, compared with traditional paid-search text-based ads.
id8 Group R2 Studios lays claim to a patent titled "Method, system, and computer program product for managing controlled residential or non-residential environments."
The patent, granted in June 2012, describes how "a control server, or similar central processor, manages the distribution of data (including audio and video), voice, and control signals among a plurality of devices connected via a wired and/or wireless communications network."
It names audio and visual devices, such as, televisions, monitors, PDAs, notepads, notebooks, MP3, and portable stereo, as well as household appliances like lighting, ovens, and alarm clocks. The control server supports video and audio serving, telephony, messaging, file sharing, internetworking, and security."
Although unconfirmed, from a description in the patent it seems R2 Studios could have been working with Microsoft prior to the acquisition.
Microsoft also hired Krikorian, who earlier had founded the company behind the Slingbox, which EchoStar acquired.
"Watching TV photo from Shutterstock"
Laurie Sullivan is a writer and editor for MediaPost. You can reach Laurie at lauriesullivan@gmail.com.
Cable TV has always been able to raise subscriber rates, including exclusive STB rental rates, with impunity. For that reason they have adopted a flawed revenue model that has reached the tipping point. Not only is the poverty level a problem at 40%, there are over 60% of the Gen Y's at risk.To quote Pogo, we have met the enemy and he is us. Netflix has more subscribers than Comcast; and satellite has 30% of the market, for a reason. Netflix deal with Disney is the big crack in the content dam.Subscribers are creating a de facto ala carte - Amazon, Google, Apple,etc.. There appears ways to circumvent the continued rate increases. Internet has proven there are targeted ad models that work. Google is nearly 100% ad supported. Pay TV must incorporate a targeted ad strategy along with reducing subscription rates to absorb future content increases. The hybrid model would be based on social media interests and preferences, starting with direct ads on all time shifted programming. Groupon like infomercials, with word of mouth on steroids, group buying, and urgency to buy. Amazon like preferences and alerts. Cable is currently using data from demographics and set-top boxes, a flawed strategy, with privacy issues. They could be using analytics from behavioral marketing data. Google, Microsoft, or Apple must allow mobile devices, smart phones and pads to replace TV remotes, reduce rates, and replace inhouse STB with the Cloud to become an effective alternative.