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Google Gets a TV Broadcast License
So They Can Offer IPTV Over 1 Gbps in Kansas City
by Karl Bode Wednesday 07-Mar-2012 tags: Video · competition · business · alternatives · bandwidth · consumers · Google
Google's 1 Gbps residential fiber service is officially underway in Kansas City, with consumers expected to be up and running sometime in the second half of the year. Building on earlier rumors that Google was planning to add an IPTV service into the mix, Google applied for an FCC license back in December allowing them to run the antenna farm necessary to get into delivering television. The Missouri Public Service Commission has since granted Google's approval paving the way for the company's IPTV service in Kansas City. Google's not officially confirming their TV plans, only stating the video franchise licenses were a "necessary legal step," and may or may not mean they're offering TV services (they are).

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xenophon

join:2007-09-17

Average consumers will want TV comparable to cable

If Google wants the common consumer, they'll need to offer TV service with similar channels to cable TV. Those who want Gigabit no matter what will bite but most average customers already doing cable tv/internet bundle may not jump to Google unless offering comparable TV.

I wonder if the TV distribution industry is ready for a new Googlized model though, especially if Google pushes for their own terms. Google TV could anonymously track every show that is watched. Traditional distribution channels can't do that, so you'd think the industry would be interested in exploring that model.

min buvhgt

@comcastbusiness.net

Re: Average consumers will want TV comparable to cable

said by xenophon:

Google TV could anonymously track every show that is watched. Traditional distribution channels can't do that, so you'd think the industry would be interested in exploring that model.

Ummm, yes they can. The only way they can't is the very few people who don't have a box hooked up to their tv's yet.
xenophon

join:2007-09-17

Re: Average consumers will want TV comparable to cable

I was under impression cable/sat companies only track pay per view, not all channels. Maybe I'm misinformed - admit I'm not up on it.

Google's world is anonymous data mining. They could essentially replace the Nielsen ratings model if Google decides to get into this industry more broadly... that is if the TV industry lets them and is willing to provide content to same degree as cable/sat services.

firephoto
Facts hurt
Premium
join:2003-03-18
Brewster, WA
said by min buvhgt :

said by xenophon:

Google TV could anonymously track every show that is watched. Traditional distribution channels can't do that, so you'd think the industry would be interested in exploring that model.

Ummm, yes they can. The only way they can't is the very few people who don't have a box hooked up to their tv's yet.

Probably only over-the-air and analog cable that isn't tracking your viewing habits. There isn't really much useful coming out of viewer habits except for the money made selling those stats or derivatives to people willing to pay.
--
Say no to JAMS!

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
I wonder if they'll test ala carte.
Skipig

join:2011-11-22
Parker, CO

Re: Average consumers will want TV comparable to cable

Not if the content providers have a say in it. Oh wait, they do!

It isn't the cable and satellite providers who insist on "bundling" a bunch of junk channels. It's the content providers, like ESPN. You want to air ESPN? Fine, but you also have to air ESPN 1 thru 46 as well or else the answer is "no."
xenophon

join:2007-09-17
I could see Google convincing the TV content industry based on customized user-based ads, not just based on TV viewing habits but using web browsing habits, email content, text content, Google wallet orders, Android apps liked, Google+ interests as well. Would fit into their consolidated user history thing recently rolled out. Will be scary privacy violation to some but the masses apparently don't care if it means more free services from the Googleverse. As long as the data mining truly anonymous, they'll probably get away with it.

If Google gets a piece of the TV ad revenue stream, they could potentially provide tv/gvoice/gigabit internet for $50/month.

Will be curious if the TV industry will bite. On one side they potentially get user-based ads, Nielsen like rating info but would they want Google to have that much power?
BeakersBro

join:2011-06-24

Re: Average consumers will want TV comparable to cable

said by xenophon:

I could see Google convincing the TV content industry based on customized user-based ads, not just based on TV viewing habits but using web browsing habits, email content, text content, Google wallet orders, Android apps liked, Google+ interests as well. Would fit into their consolidated user history thing recently rolled out. Will be scary privacy violation to some but the masses apparently don't care if it means more free services from the Googleverse. As long as the data mining truly anonymous, they'll probably get away with it.

If Google gets a piece of the TV ad revenue stream, they could potentially provide tv/gvoice/gigabit internet for $50/month.

Will be curious if the TV industry will bite. On one side they potentially get user-based ads, Nielsen like rating info but would they want Google to have that much power?

STBs already know exactly what you watch and when you flip channels. However, this data isn't as interesting as it might seem, since they can largely predict what you watch from demographic information they have about your household.

So, the way TV ads are setup, an average hours of TV has 12 minutes of ads. The originating network sells and inserts 10 minutes of ads and the cable/IPTV/Google sells and inserts 2 minutes of ads. The cable people also don't get to insert any ads into the local broadcast channels (ABC,NBC,CBS, Fox, and anything you can get off an antenna).

The rough rule of thumb is that a large cable company can make about $2 a month per sub with ad insertion. This isn't enough to have much influence on a cable bill.

For more precise targeting to be very profitable, Google would need to get more than their 2 minutes an hour of ads - the networks would have to share. Also, Google wouldn't have enough viewers to make this profitable.

Finally, inserting targeted ads into live TV is hard and expensive to do well.

Google could leverage their YouTube infrastructure to do VOD and VOD advertising, since all you really need for VOD is DRM, distribution servers, content, and the ability to inserts ads according to a schedule. However, so far, the revenues in VOD ad insertion are a lot lower than in live Tv ad insertion.
xenophon

join:2007-09-17

Re: Average consumers will want TV comparable to cable

I suspect Google's IPTV model could completely change the logistics of how the current ad placement model works - that is if the content providers/distributors/tv networks are willing to work with Google on a completely new model.

treichhart

join:2006-12-12

Why not just go wholesale IPTV setup

why dont google go wholesale IPTV setup for smaller IPTV's like wisp's can tap into this.

dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ
kudos:4

Re: Why not just go wholesale IPTV setup

said by treichhart:

why dont google go wholesale IPTV setup for smaller IPTV's like wisp's can tap into this.

Given the absurdly low caps wisps have that wouldn't be an option and to make it feasible they'd really have to crank up the compression.

treichhart

join:2006-12-12
As a WISP owner I dont have a cap so it wouldnt make a differences and there is other WISP's dont have caps if they do its because they have limited options to bandwidth or they are billed on a 95th percentile system.

FailOverflow

join:2011-02-23
united state

hmm.

So you have inside knowledge that this will indeed happen?
xenophon

join:2007-09-17

Re: hmm.

It probably will to some degree as there is a lot of writing on the wall. The bigger question is will they get most of the TV distributors to play. Maybe a couple will but Google needs to match cable/sat services.
moes

join:2009-11-15
Indianapolis, IN

google

I'd just wish I could get all my services from google, atleast then I wont be ripped off.
Roop

join:2003-11-15
Ottawa, ON

Re: google

yeah it's easy to offer services for cheap when they sell your behaviour to people.
moes

join:2009-11-15
Indianapolis, IN

Re: google

Sadly, This does not bother me, Ive got nothing to hide.
elray

join:2000-12-16
Santa Monica, CA

Broadcast license?

Really?

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