Google Enters TV Market with Intel, Sony, and Logitech Partnership

Strategic Insights -

Google is working with Intel, Sony, and Logitech to bring its Web software to televisions through a project called Google TV. The initiative utilizes Intel chips and will feature a keyboard developed by Logitech that functions as a remote control. This move aims to challenge existing players in the TV-based Internet market, including Yahoo!, TiVo, Rovi, and Microsoft. Intel sees this partnership as a means to bolster sales of its Atom chip, which is already used in netbooks, and aims to expand its presence in the consumer-electronics market. Google TV is expected to make Internet connectivity more accessible beyond the PC and mobile spaces, which Google has already entered with its Android operating system.

Key Takeaways:

  • Google TV is a joint project with Intel, Sony, and Logitech, utilizing Intel chips and a Logitech keyboard that operates as a remote control.
  • The project aims to expand Google's presence in the TV-based Internet market, challenging existing players like Yahoo!, TiVo, Rovi, and Microsoft.
  • Intel sees the partnership as a way to bolster sales of its Atom chip, which already powers netbooks, and increase its presence in the consumer-electronics market.
  • Google TV is set to expand Internet connectivity beyond the PC and mobile spaces, which Google has already entered with its Android operating system.
  • Sony plans to introduce an advanced TV model as part of its efforts to turn around its TV business, aiming to make its TV operations profitable by March 2011.
  • Analysts believe this kind of technology will not be unique to Sony, and if they don't adopt it, Apple may take the lead.

Statistics:

  • Google's stock price rose 0.1% to close at $565.56 on the Nasdaq Stock Market yesterday.
  • Intel's stock price advanced 1.1% to the highest level since Sep. 2, 2008.
  • Sony's stock price gained 0.9% to 3,455 yen as of 12:51 p.m. on the Tokyo Stock Exchange.
  • According to analyst Sandeep Aggarwal, Google has a much bigger role to play on TV now than in the past three to four years.
  • Google's Android operating system has already been adopted by manufacturers including Motorola Inc. and HTC Corp.

Sources:

  • Two people involved in the discussions with Google, Intel, Sony, and Logitech
  • Kurt Scherf, an analyst at Parks Associates in Dallas
  • Gabriel Stricker, a spokesman for Google
  • Greg Belloni, a U.S.-based spokesman for Sony
  • Pamela McCracken, a spokeswoman for Logitech
  • Mary Ninow, an Intel spokeswoman
  • The New York Times
  • Sandeep Aggarwal, an analyst at Collins Stewart LLC in San Francisco
  • Yuji Fujimori, a Tokyo-based analyst at Barclays Capital
  • Sony's Nov. 19 announcement regarding its efforts to turn around its TV business
  • Euclid Infotech, distributed by Contify.com