Google TV

The New York Times is reporting that Google, Intel, and Sony are at work together on a Web television for both set-top boxes and connected TVs. Whether it's true or not, the three companies would appear to be good partners:

• Google has an interest in extending its search and advertising placement expertise to the TV screen, as evidenced by its tests with DISH Network;
• Intel faces challenges in convincing consumer electronics companies to use their Atom processors instead of existing suppliers; and
• Sony is trying to revive its brand.

What is very interesting about Google's play here is what impact this might bring to television and online video advertising. To date, we haven't seen much success with online video advertising, and the model for consumer electronics companies in delivering Web-connected products is to work with content agregators (Netflix, Amazon, CinemaNow) and get a small share of the revenue generated from transactional-based VoD orders. So far, the advertising slice of the pie has been so small that it really isn't even a discussion point for revenue sharing. With Google involved, I wonder if they're going to sweeten the pot for CE manufacturers to entice them to leave Yahoo!, DivX, Rovi, IBM, or any of the other Web-on-TV solutions providers.