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Jun27
Why Google is Fighting to Bring Internet Video to TV

The latest announcement that Google (Nasdaq:GOOG) has developed software by which users of Playstation 3 can now stream Web video to their Television sets, is a part of their continuous strategy to tackle the psychology of people used to getting content for free and uninterrupted on the Internet.

Include in this latest move their agreements with Media Smart TV from Hewlett-Packard (NYSE:HPQ), along with Apple TV (Nasdaq:AAPL) and you can see where they're going and what the strategy is.

Like many other online companies, Google has been the creator of their own problem, by implementing plans that build a large base of Web visitors without any means of monetizing it. In other words, they've socialized viewers to expect this in order to build their large potential customer base.

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Now their big challenge is to absorb the huge costs it takes to run YouTube, while trying to train users to accept some type of interference with their experience. Have no doubt that Google has to do this, no matter what they try to spin.

So what does this have to do with the psychology of users? If they are able to transfer content from being viewed on a computer monitor to the TV set, they've already won half the battle, as people trepidly accept the idea that they will view commercials in return for watching their favorite TV show.

Their will be less resistance from those that take the simple step of transferring video from the Web to their TV set. It may not seem like a big step ... simply transferring video from one screen or platform to another, but it is.

Once Google - and others - are able to do this, the door opens up to offer all types of video content with advertising placed against it. When this happens, the potential monetization of online video is open to them.

Now this doesn't deal with the amateur, short-form video problem that advertisers aren't interesting in placing their brands with, but it will open the door to professional and semi-professional content they can generate some serious revenue with.

The challenge for Google with YouTube is to find a way they can keep the amateur video experience in place, while finding long form video that is built more for the advertising world. They must figure out how to make enough money to not only profit, but to profit while keeping the amateur experience in place.

What that means is the YouTube we know today will definitely change, and Google will attempt to make it look like it's not copying MySpace (NYSE:NWS-A) or Hulu in this area, even though they are.


1 Comments/Trackbacks




» Is Google trying to thin out the Viewer Ranks on YouTube? from TheAlphaMarketer
With so many viewers utilizing YouTube and refusing to accept ads, Google looks like it's going to take steps to remedy that situation by offering pre- or post-roll ads on the site.Some seemed to get confused and angry when Google... [Read More]

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