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Rishi Chandra, Google TV's lead product manager, likened the broadcasters' payment requests to a network demanding fees from Microsoft Corp. so video would work on its Internet Explorer browser.
Is Google enhancing what's on TV already with Web content? Yes. Is Google TV is misunderstood as a tool to enable consumers to cut their cable or satellite TV subscriptions? No. Consumers will cut the cord. It's unstoppable - and not just because of Google - Connected TVs and other platforms such as Yahoo Connected TV; Samsung Internet@TV; Philips, Sharp and Loewe Net TV, Sony, Toshiba and other platforms around internet connectivity and television are making their way to the market fast. And other TV industry-driven platforms being adopted in Europe and Asia such as HbbTV and Youview in the UK. As we wrote earlier: Connected TV'S to reach 119 million in 2014.
It's the same discussion that Mark Cuban and I had recently on the same subject via his blog.
Mark: So giving the same content they not only charge their distributors for, but also charge their local affiliates for to Google for nothing or for a share of revenue ? STUPID.
Richard: Once again, what the content providers and distribution channels choose to charge on their inventory available on Internet Protocol (IP) is their own choice. Google TV is merely a gateway to the World Wide Web - they are not dumbing down the web for TV (like app-driven architecture such as CE manufactures (Samsung, Philips, Sharp, Panasonic, etc), and others (such as Boxee, Yahoo, Roku etc) are offering, they are empowering consumers to explore and make use of the Internet on the big screen in their living room... in it's full glory.
In a further telephone interview with Ryan Nakashima of the Canadian Press Chandra clarified his remarks to say that although Google TV would not pay to access online shows, another Google subsidiary, YouTube, could extend its advertising revenue-share model to the living room.
"The way we would pay for content is through a similar mechanism that we pay for content through YouTube," Chandra said in a phone interview with Nakashima. "This is the difference between Google TV and YouTube. YouTube is a service. Google TV itself is literally just a platform."
Chandra added that it's up to content providers to decide how much to charge consumers and that Google TV is meant to supplement the cable and broadcast TV business model by adding Web access. He also told the Canadian Press that Google TV is preparing to provide access to Hulu Plus, the $10-per-month online video subscription plan that allows users to access the back episodes of many current TV shows from News Corp.'s Fox, NBC Universal and The Walt Disney Co.'s ABC, such as "Glee," ''30 Rock," and "Modern Family."