At the TV market Google takes another shot

Google Inc. makes an effort to bring its Web-savvy television, hoping for a big new market to exploit consumers, despite the lukewarm response to his original offer.


Internet search engine unveiled a revamped version of its Google TV service on Friday, bringing new features designed to make the product easier to use and more attractive to consumers.

The new 2.0 version of Google TV offers new tools to recommend movies, TV shows and online video to TV viewers, making it easier for software developers to create new programs from the TV screen to create.

"There is great thirst for the use of the Internet in the room," says Google VP of Product Management Mario Queiroz, head of Google TV initiative.

But in a sign of the many challenges that frustrated Google's ambitions for the living and the other tech companies including Apple Inc., described the Google TV Queiroz as a prisoner a "long term commitment."

"I do not know the exact month it will rise," he told Reuters during a demonstration of the new product on Google's Mountain View, California headquarters last week. "I think a lot of progress over the last year and the next year will be a lot more progress."

Google TV - currently comes installed on some Sony Corp. TVs and Logitech International set-top boxes - to consumers online video and Web sites on their TV and access to play with specialized applications such as video games.

Google will not disclose how many users of Google TV, which was launched with great fanfare last year. But some analysts say that version 1.0 of the product has been a flop.

"The fire they never attempted to start, even got a spark," says Forrester Research analyst James McQuivey.

The $ 299 price for the cheapest Google TV set too high, said McQuivey (Logitech has since lowered the price of its product to $ 100). And the fact that many of the television, perhaps sensing a threat to Google's web-based version of their shows blocked and available on Google TV sets created confusion among consumers, he said.

But television is attractive a market for Google to ignore, analysts say.

For Google, 96 percent of its revenues from advertising last year that television is a significant opportunity for expansion. According to research firm IDC, in the American television this year is expected to nearly 70 billion dollars in the market.

With a foothold in the living room can also be important for Google because the boundaries between traditional media and the internet backlash as Google moves to the rich treasure of amateur videos on YouTube instead of helping with professionally produced content.

Other tech giants also recognize TV options, including Microsoft Corp., has taken steps to Xbox console into a general purpose media player.

In the recently published biography of Steve Jobs, says author Walter Isaacson a conversation where the recently deceased Apple co-founder said he was interested in creating an "integrated television sets" that seamlessly connect to the Internet and all of a consumer electronic devices. Until now, analysts say Apple's foray into the television market has been a rare failure for the iPhone maker.

"The reason these companies are all looking at this market is that there are many markets that 200 million plus units a year and has an installed base of one billion plus screens," says IDC analyst Danielle Levitas, referring to the worldwide sales set of television rights. "You can not ignore markets like big on monitors, which are important in terms of hours and delivered media."

MOTOROLA FACTOR
One advantage that Google could have the television market is the planned $ 12.5 billion acquisition of Motorola Mobility Holdings Inc., a cable TV set-top boxes and mobile phones do.

"If I was Google, the first thing I would do is (Google TV software) in the next round of Motorola set-top boxes, and (on cable providers) says:" We'll give you half-off for these things If Google TV sets in, "said McQuivey of Forrester Research.

Google Queiroz refused to discuss how Motorola could fit into Google TV plans other than to note that Google has said that Motorola plans to run as an independent company after the acquisition closed.

Beginning on Sunday, Google will automatically upgrade the software on existing Google TV Sony devices that are already in consumers' homes, with software updates to Logitech comes shortly after. New Google TV devices from manufacturers like Samsung and Vizio are expected next year.

Google has built a Google TV on the new "Honeycomb" version of its Android operating system. The company has also redesigned the look of Google TV to replace messy, computer-like screen with options with a more minimalist stripe graphic icons that sits at the bottom of the TV screen.

Google's Android Market, the central clearinghouse for smartphone and tablet programs designed to run on Android OS, is now available on Google TV. This means that software developers, smartphone applications, such as Rovio's Angry Birds do could easily versions that run on Google TV offering.

But unlike Internet smartphones, which has become wildly popular in recent years, Web-TV products from Google and other companies face a steep path, as they strive to prove their value to consumers, some analysts say.

"It's an incredibly difficult screen to find out," says IDC's Levitas, noting that unlike smartphones and PCs, television is often watched by more people and have two different experiences - standard TV programs and Web content - must be linked cleverly.

"TV is the last frontier, we crack in the connected experience," said Levitas.

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