Google and Intel in web TV launch
Google and Intel are expected to announce a significant breakthrough into consumer electronics and the broadcast industry this week with the launch of a “Smart TV” platform. — Top executives from the Silicon Valley companies are reported to be ready …
Context & Ripple Effects
Google had already been reported to be seeking a foothold in television with partners, and subsequent coverage outlined how Google TV might work. The reported Smart TV announcement moves that effort from exploratory positioning toward a product-platform challenge spanning consumer devices and broadcasters.
The claim remains reported rather than confirmed as of May 17, 2010, but it matters because Google and Intel would be jointly testing whether a web-oriented software platform and PC-derived silicon can gain a place in the television value chain.
First-order effects
- A Smart TV launch would give Google a direct route for its software and web services into the television set, extending its competition beyond the browser and handset.
- Intel would gain a high-profile outlet for its processors in consumer electronics, tying its TV ambitions to Google's proposed platform.
Second-order effects
- Television manufacturers and set-top-box suppliers would face pressure to decide whether to support Google's platform or preserve control over the on-screen interface and customer relationship.
- Broadcasters and other video providers would have to assess distribution on a Google-led TV interface, where web access and traditional programming meet.
Third-order effects
- If device makers adopt the platform, television could shift toward a computing-style stack in which software providers and chip vendors influence the viewing interface alongside broadcasters.
- The effort is an early test of whether control of TV distribution moves from closed broadcast and device systems toward web-platform ecosystems.
The trend: Consumer television is becoming a strategic battleground for web platforms and semiconductor suppliers seeking control of the interface between viewers, content, and connected devices.