Google as Your Cable Provider

By Monday, November 14, 2011 0 , Permalink

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Last February Google announced their Fiber project, an experimental Broadband TV+Internet+Telephone Network in Kansas City, Kansas and Kansas City, Missouri. Their “experiment” consisted of offering Triple Play packages to users at home. The service is expected to be functional in early 2012.

Naturally, the question to be answered is: What will Google offer that is different from traditional cable companies?

From a TV programming perspective, according to the WSJ, Google has been talking to a number of TV channel owners including The Walt Disney Co., Time Warner, and Discovery Communications, etc. to be included in the Google network programming. There has been so much talk about “Youtube becoming the future of TV” and last Friday, Youtube announced that it was developing 100 channels based on content type, such as how-to videos, dance, pets, sports, etc. And with Google providing its own programming could potentially fast track Youtube becoming a dominant ingestion of TV content.

From a internet provider perspective, Google Fiber promises to offer one gigabit-per-second experimental fiber-to-home network. That’s up to 100 times faster downloads, and 1,000 times faster uploads than what’s usually available through conventional broadband.

From a pricing standpoint, although there is no definite price point announced, Google is in a good position to offer its cable service at a lower price than current cable companies (or for free?) and profit through its vast advertising and partnership deals, similar to its approach with its search product, video business (Youtube) and the Android OS business. According to TMCnet, so far Google has grown to a value of $180 billion+ mostly by selling ads to people on the Internet, not by actually producing or contracting for content.




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