Android and Chromecast Will Replace GOOG TV

Fragmentation is hurting Google, even in the realm of television

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Consumers’ hands are packed with tablets and smartphones, which means the living room is one of the biggest opportunities left in the consumer tech market. Not the TVs themselves — although rumors won’t die that Apple (AAPL) is poised to take a leap in that direction with its own branded television set — but the “box” that streams content.

All the usual suspects are involved in trying to grab a piece of this relatively low-hanging fruit, but one of the biggest players seems to be readying for a reboot. Gigaom thinks that Google (GOOG) is preparing to kill off Google TV. Once again, it looks as though Android fragmentation is one of the issues here, a problem that is increasingly dogging Google.

What is Google TV?

Initially unveiled in 2010, Google TV is a platform for connected televisions, based on a customized version of GOOG Android operating system. Initially, it used its own apps, which came pre-installed on Google TV devices. Hardware took the form of set-top boxes (á la Apple TV) and the OS was also incorporated in select Smart TVs.

Vendors ran into a problem almost immediately when the major TV networks blocked Google TV devices from accessing programming hosted on their websites or on the Hulu streaming service. Meanwhile buyers were complaining about a lack of apps for the service

One of the first Google TV set-top boxes was the Logitech (LOGI) Revue, designed to compete against the Apple TV. The Revue was announced with considerable fanfare and a $299 price tag. Despite having its price slashed within months to just $99 and receiving a new Honeycomb (Android 3.1) update to Google TV that gave owners access to Android Market apps, the Revue was a bomb. The device contributed to a Logitech CEO shakeup amid Revue-related losses.

Sony (SNE) was one of the other early supporters of Google TV, releasing television sets, Blu-ray disc players and eventually a set-top box that were Google TV certified. LG also released Google TVs and Samsung (SSNLF) displayed Google TV-equipped sets late last year, but instead of embracing the platform (it had previously used its own Internet TV platform), the company recently released its own Android-powered HomeSync set top box.

The Fragmentation Problem

Google’s Android platform has a problem with fragmentation, whether we’re talking about smartphones, tablets, smartwatches or TVs. Fragmentation means that even though there are a massive number of Android-powered devices out there, they can’t be treated as a single market. Different devices are running different versions of Android, and not all manufacturers release updates for their products, so TVs running outdated software are an issue. Some manufacturers (like Samsung) run customized versions of Android, and not all devices have access to Google Play and not all have access to Google TV apps.


Article printed from InvestorPlace Media, http://investorplace.com/2013/10/goog-tries-google-tv-reboot/.

©2014 InvestorPlace Media, LLC

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