Friday, October 22, 2010

TV Networks Are Blocking Google TV

The Wall Street Journal reported today that the nation's big broadcast networks are blocking Google TV, triggering quite a bit of speculation over why this might be the case.

The networks aren't blocking Google TV because it's Google. They are blocking Google TV because it is putting a web TV show, with web TV show economics, on a TV, which would be incredibly disruptive to their business.

The reason the networks are blocking Google TV and Boxee (and Hulu is still PC-only) is about ad revenue: they don't get enough of it from the web. And letting you watch GLEE on your TV, but via the web and Google TV, means substituting high broadcast revenue for lower digital revenue.

Ultimately, the networks would like to either normalize the number of ads on the web and TV or increase the revenue per viewer-minute on the web through new, targeted or interactive ads. So far, networks like ABC, CBS and The CW have been increasing ad loads slowly, as the market and viewers will support it.

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