Saturday, September 4, 2010

Apple TV, Google TV Take Different Approaches

Apple and Google are taking different approaches to their TV efforts. Apple TV essentially wants to be an add-on that delivers streaming Internet video to the TV display, in an "iTunes for TV" type approach. But consistent with the way Apple approaches its other businesses, the emphasis will be on streaming video available within the Apple ecosystem, in all likelihood.

Google TV really aims to be an active organizer of linear and Internet TV options, acting more like a traditional set-top decoder than a provider of online video that can be viewed on a TV. And, so far, Apple has gone with an "accessory" approach to the "iTunes for TV" business, while Google is working with partners to embed the functionality directly into the TV itself.

Apple's approach likely will work better in the near term, but Google's approach would be more powerful long term, if sufficient number of Google TV units can be shipped. Historically, one would side with Apple in terms of building the user base.

Cable, satellite and telco video providers have found they must provide their own decoding units, instead of relying on TV suppliers to build that functionality into the actual TVs.

Apple's approach makes it more of a distribution channel and partner to content companies. Google's approach, riskier in some ways, represents a potentially more significant change in video viewing habits. For one thing, it essentially makes linear video delivered by a service provider and Internet video gathered from across the web "equals" in terms of viewing choices.

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