May 22, 2010

Google Introduces Web Software for TV

Google found new way to generate revenue through their new software which enables web content on television to encourage viewers to use internet in their living room and view advertisements to generate revenue.

Google TV empowered with Intel Corp, Sony Corp and Logitech International.

The companies are trying to benefit from growing demand for Web-based programming and information on large screens, in more rooms of the house. Google, with the largest share of online advertising, wants a slice of the $175-billion TV-ad market. Intel aims to land its chips, already in about 80 percent of the world’s personal computers, into a wider range of electronics.

“Television is becoming the true third window, with the computer and the phone, allowing you to access what you want when you want it,” Eric Kim, who heads Intel’s digital home division, said in an interview. “The dumb tube is turning into an intelligent device, a smart TV.”

Google TV serves as an “entertainment hub” that lets viewers search channels, recorded shows and web sites, Google said in a video on its YouTube entertainment site.

The company isn’t currently selling ads specifically designed for the new platform, said Rishi Chandra, a product manager at Google. Users could see Google’s ads as they browse web sites when accessing the Internet on the new TV service.

“We want to get the product experience right first,” Chandra said. “Over time, there will be opportunities to really rethink how ads can actually work better on this TV experience.”

The service will include video-on-demand products from Inc., Netflix Inc. and Hulu, a video site partly owned by Walt Disney Co., Google said at the conference.

“There is still no better medium to reach a wider and broader audience than the television,” Rishi said during the company’s developers’ conference in San Francisco. “Video should be consumed on the biggest and brightest screen in the house.”

Google has adapted a version of its Android software and Chrome Internet browser to display television programming from cable and satellite sources and video from the Web. Applications that have been written for existing versions of Android, used in mobile phones, will now work on television screens.
Bloomberg News

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