According to the latest report, in order to better compete with rivals such as Amazon and Roku, Google CEO Sundar Pichai has made the connected TV business the company’s “primary Task”.
People familiar with the matter said Google has increased the fees it pays to TV manufacturers to install its software on connected devices. To be precise, for hardware manufacturers willing to install Google software on their networked devices, Google is willing to pay between US$10 and US$15 for each device. In contrast, competitor Roku pays $7 to $8.
Obviously, Google’s efforts have been successful, winning the business of Chinese TV manufacturer TCL. TCL is known for its cooperation with Roku, and the company said it will start producing TVs equipped with Google’s operating system. TCL has also established a manufacturing partnership with Amazon to produce private-label TVs for Amazon.
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Currently, as American households continue to abandon cable TV, Roku, Amazon, Google, and Apple are increasingly competing in the field of connected TV. At the same time, these companies are also competing with TV manufacturers that have created their own platforms, including Vizio, LG, and Samsung, as well as cable providers that have launched streaming services.
Networked TV platforms can determine whether streaming services such as Netflix, Hulu, and Disney+ can provide consumers with their apps. In exchange, networked TV platforms can earn a commission through subscription revenue or advertising. But in some cases, networked TV platforms are unwilling to make any compromises in terms of distribution.
For example, Google’s YouTube platform has stated that it will be able to remove its app from Roku after December 9 because the two parties have failed to reach a new distribution agreement.
As early as 2010, when Google cooperated with Sony, Intel, and Logitech to launch Google TV, it put forward the vision of launching a set-top box or streaming stick. Based on this, Google launched Chromecast in 2013 and Android TV in 2014. Last year, after Google launched the latest Chromecast with Google TV, the core functions of these two products have been integrated.
In order to compete with Apple and Amazon, Google TV provides personalized viewing recommendations and easy access to Google’s OTT live streaming service YouTube TV. There are reports that Google is preparing to launch an extensive marketing campaign around Google TV.
The report also said that Google’s sales representatives have informed media executives that Google CEO Pichai has made it clear that connected TV is Google’s top priority. Previously, many people in the industry believed that Google’s efforts on Chromecast and Android TV were “half-hearted.”
