The ink may not even have dried on Google’s announcement of its impending launch of 100 custom YouTube channels when we hear news of the company’s plans to enter the pay-TV business with high speed internet and cable offerings, starting from Kansas City.
Google had already announced plans to build a high-speed fiber-optic internet network in Kansas City, but now, the WSJ reports that the company may very well foray into the $150Bn/year pay-television market with a suite of cable services, as well as telephone offerings.
No definite announcements have been made to this effect, however. But as the WSJ reports, Google has been talking about including content owned by Disney, Time Warner among others, amid other rumors of the recent hiring of Jeremy Stern, a top tier cable TV executive.
Further, a cable and telephone offering would tie-in nicely with the already announced high-speed internet service, putting Google directly in competition with what cable companies call the ‘triple pay’ of cable, telephone and high-speed internet. And since advertising is Google’s strong suit, it could, theoretically, not just sell TV subscriptions, but also ads on those subscriptions through its online platform.
We can’t, of course, forget YouTube here. As the battle for video eyeballs heats up, Google cornering the cable and high-speed internet market would put it in prime position to expand its YouTube offerings. In the near future, you could very well watch a custom YouTube channel on your TV through your Google cable TV subscription with ads powered by Google’s online ad platform.
But I can’t help but asking: is this a little too much for the company to handle? Google is already fighting a battle on its home turf as Bing continues to gain market share. It has already armored up for a lengthy war with Facebook over social with Google+. Add to that the competition with Groupon with Google Offers, and you have a company that is dipping its fingers into far too many pies. Though a high-speed internet service falls perfectly in its realm of expertise, cable TV isn’t exactly in the company’s DNA.
You won’t hear residents of Kansas City complaining though…
Image Credit: Gen Gibler
